US stablecoin bill fails after $65 million bipartisan effort stalls

The Guiding and Establishing National Innovation for US Stablecoins of 2025 Act, known as the GENIUS Act, failed to pass a cloture vote in the US Senate on May 8.

The bill aimed to provide clearer regulatory guidelines for stablecoins, focusing on their use in payments and extending dollar dominance internationally.

Sponsored by Senator Bill Hagerty and co-sponsored by Senators Tim Scott, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks, the bill initially enjoyed bipartisan support.

However, last-minute opposition from Senate Democrats, who expressed concerns about US President Donald Trump’s cryptocurrency ventures, led to the bill’s failure to clear the procedural vote.

To address Democratic concerns, the bill had been amended to include stricter Anti-Money Laundering provisions for stablecoin issuers.

Despite these changes, the bill did not secure the necessary votes to advance.

"Democrats have been accommodated every step of the way […] frankly, I just don’t get it,” stated Senate Majority Leader John Thune, criticising the opposition.

“I’m deeply disappointed that we were unable to pass this important, bipartisan-crafted stablecoin legislation today. Make no mistake, digital assets are the future and America must lead the way,” said Senator Cynthia Lummis, expressing disappointment.

Treasury Secretary Scott Bessent also commented on the setback, emphasising the need for US leadership in digital assets.

“For stablecoins and other digital assets to thrive globally, the world needs American leadership,” he wrote on social media.

Kristin Smith, CEO of the Blockchain Association, acknowledged the disappointment but remained hopeful about bipartisan engagement on digital asset legislation.

“While disappointed that the GENIUS Act did not pass its cloture vote today, we remain encouraged by the bipartisan engagement on this critical digital asset legislation,” she said.