The U.S. Senate’s cloture vote on the GENIUS Act, a bill aimed at regulating stablecoins, failed to secure the necessary 60 votes to advance, marking a setback for cryptocurrency legislation.
A Tight Vote Ends in Defeat
The vote, held at 1:45 PM EST on May 8, 2025, was expected to be a close call, following intense negotiations between Republicans and Democrats. Ultimately, the bill fell short, with only 48 votes in favor—well below the threshold needed to proceed.
Senate Banking Committee Chairman Tim Scott blamed the defeat on Democratic opposition, calling it a political move against President Trump and the Republican Party.
“It was a vote against President Trump and President Trump’s legislative agenda. A vote to stop President Trump from having a victory in the digital asset space.” Scott said, as reported by Eleanor Terrett. “Trump Derangement Syndrome has once again hijacked responsible governance in this chamber.”
Not all republicans voted in favor of the GENIUS Act, however. At least three Republican senators—Rand Paul (KY), Josh Hawley (MO), and John Kennedy (LA)—voted against the bill.
Democrats on The Offensive
A vocal opponent of the GENIUS Act, Democratic Senator Elizabeth Warren took to X to criticize President Trump over a $2 billion deal between World Liberty Finance and UAE-based firm MGX, which is backed by Abu Dhabi’s sovereign wealth fund.
According to her, this deal, which used the Trump-affiliated stablecoin USD1 to facilitate MGX’s $2 billion investment in Binance, raises concerns about foreign influence and ethical risks in the cryptocurrency sector.
Meanwhile, Senator Bernie Sanders also bashed the GENIUS Act, claiming that it would “ undermine consumer protections, benefit criminal actors, and allow the Trump family to make tens of millions of dollars through crypto ventures”, on Twitter.
Despite the setback, lawmakers on both sides have shown signs that negotiations will continue after potential revisions in the upcoming weeks.
The GENIUS Act is a proposed bill aimed at regulating stablecoins, digital currencies pegged to the U.S. dollar, by enforcing stricter capital requirements, transparency measures, and anti-money laundering provisions.
Supporters argue that the bill would bring much-needed oversight to the rapidly growing stablecoin industry, preventing fraud, ensuring consumer protection, and solidifying the legitimacy of crypto assets within the financial system.
However, critics of the bill, like Senators Sanders and Warren, argue that it lacks strong safeguards against money laundering, foreign influence, and corporate manipulation. Given the decentralized nature of digital assets like stablecoins, they argue that without robust oversight, these assets could be exploited for illicit financial activities, enabling bad actors to move large sums without regulatory detection.
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