GENIUS Act stalls in Senate, lawmakers eye new proposal next week

The Senate denied the motion to invoke cloture on the motion to consider the GENIUS Act bill, which aims to regulate stablecoins in the US.

The decision came with a one-vote difference, as 49 Democrat senators denied the motion against 48 favorable votes. 

Senate Majority Leader John Thune accused Democrats of using the filibuster for the fourth time in 2025, adding that the reason is unknown.

Thune said:

“This is a bipartisan issue. This is a bipartisan bill. And it had a bipartisan process from the very beginning. If the Democrats were interested in further changes, as they claim, they would have the chance to make those changes on the floor. All they had to do was vote for cloture.”

Senator Tim Scott said the motion’s rejection was an obstruction of innovation, claiming that Democrats and Republicans missed an opportunity to unite “in an American way to deliver real change for Americans.”

Treasury Secretary Scott Bessent stated that the Senate missed an opportunity to provide “American leadership,” which he deemed necessary for crypto to thrive globally.

Bessent added:

“This bill represents a once-in-a-generation opportunity to expand dollar dominance and US influence in financial innovation. Without it, stablecoins will be subject to a patchwork of state regulations instead of a streamlined federal framework that is more conducive to growth and competitiveness.”

Senator Cynthia Lummis shared her discontentment on an X statement, saying she was “deeply disappointed” by the vote’s result. 

She added:

“Make no mistake, digital assets are the future, and America must lead the way. I want to thank President Trump, Sen. Gillibrand, Leader Thune, Chairman Scott, and Senator Hagerty for their leadership and unwavering commitment to keeping digital asset companies and jobs onshore.”

GENIUS Act temporarily delayed

Galaxy Digital head of research Alex Thorn said the “hope is that a new version of the bill will be introduced as soon as Monday to try again.”

Digital Chamber head of government affairs Taylor Barr said the denial of the cloture motion is not the end, adding that it doesn’t change that “digital assets are here to stay.”

Variant Fund chief legal officer Jake Chervinsky said the decision “isn’t no, just not yet.” He added that there are many reasons why the legislation was not passed on May 8, but more bipartisan work can address these issues.

Solana Policy Institute CEO Miller Whitehouse-Levine echoed the belief in a positive outcome from a bipartisan effort, saying it will “get the GENIUS Act over the finish line.”

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