The cryptocurrency sector is dismissing a unsuccessful vote on a stablecoin bill in the Senate, highlighting recent advancements and the optimism that this may not be the final chapter forcrypto regulations.
On Thursday, Democrats prevented the Senate from advancing the GENIUS Act, legislation aimed at establishing regulations for payment stablecoins.
The proposal was rejected with 48 votes against and 49 in favor, failing to reach the necessary 60 votes needed to advance towards final approval. The division closely followed party affiliations, as bipartisan backing for the measure crumbled earlier in the week.
“It will survive to battle another day,” Kara Calvert, the vice president of U.S. policy at Coinbase, told The Hill.
“Did I want to see the vote succeed? Definitely. Would that have improved my mood for the day? Certainly. However, I left without believing that this bill would fail or that this problem would disappear,” she said.
A contingent of crypto-friendly Democrats pulled support for the GENIUS Act after Senate leadership moved to expedite a vote on the legislation last week.
Several Democratic senators, who had previously supported advancing the bill from the Senate Banking Committee in March, contended that Republicans had ended talks too soon.
They mentioned they were still worried about sections related to anti-money laundering, national security, and several other topics, which prevented them from backing the present iteration of the legislation.
Over multiple intense days of discussions, both parties seemed close to reaching an agreement by early Thursday morning before the voting took place. Nevertheless, various Democratic members mentioned that they still hadn’t laid eyes on the updated version of the legislation.
Senator Ruben Gallego from Arizona, who leads the Democratic side of the Senate Banking Subcommittee on Digital Assets, requested a postponement of the vote till Monday to provide additional time for deliberation. Nevertheless, this appeal was denied, and as a result, the Democrats opposed the bill.
Senate Majority Leader John Thune (R-S.D.), who lambasted Democrats for blocking the bill, ultimately changed his vote to no Thursday in a procedural move that allows him to bring the measure up again.
Cody Carbone, CEO of crypto advocacy group The Digital Chamber, described Thursday’s vote as a “setback” but argued it is “far from a defeat,” noting that leadership left open the door to reconsider the bill.
“Late-stage talks demonstrate that the momentum is genuine, and that legislators from all parties grasp the importance of the situation,” Carbone stated.
The Digital Chamber will continue collaborating with both Republicans and Democrats to push this forward,” he said. “Legislation for stablecoins is not a political divide; it’s crucial for our economy and national security. The U.S. cannot afford to be passive on this.
Kristin Smith from The Blockchain Association also expressed that the organization was disheartened by the voting outcome but felt “motivated by the cross-party involvement.”
“We encourage this discussion to intensify seriously and for our representatives to be informed that the core essence of stablecoin technology is beneficial for consumers by offering access to modern financial tools, as well as advantageous for Americans by bolstering the worldwide dominance of the U.S. dollar,” she stated.
Crypto legislation has gained new momentum under the Trump administration and Republican leadership in Congress, with the president and GOP lawmakers making stablecoin and market structure legislation a key priority.
The stablecoin legislation seemed to be progressing smoothly until last week’s political disagreement. In March, the GENIUS Act was approved by the Senate Banking Committee, whereas its counterpart in the House, the STABLE Act, moved forward after being endorsed by the House Financial Services Committee in April.
Nevertheless, President Trump’s own forays into cryptocurrency seem to be complicating his policy goals as well.
Recently, the president along with his family has expanded their cryptocurrency holdings. Their initiative, World Liberty Financial, declared earlier this week that they will utilize their newly launched stablecoin for a substantial $2 billion deal involving UAE-based company MGX and the major crypto platform Binance.
The statement, together with Trump’s other recent actions concerning cryptocurrencies, has raised worries among Democrats that the president might be using his position for personal gain and exposing the U.S. government to potential foreign interference.
This development gave fresh ammunition to the critics of the GENIUS Act within the Senate, while leading Democrats to withdraw from a discussion on market structure legislation during a House committee meeting earlier this week.
On Thursday, the Bitcoin Policy Institute countered several Democratic Party worries about the stablecoin bill, asserting that it includes robust anti-money laundering measures. They also proposed that potential conflicts of interest might be better handled through subsequent legislative actions.
Current political resistance to the GENIUS Act is misdirected because it includes strong anti-money laundering provisions for both U.S. and international companies,” stated Zack Shapiro, who leads the institute’s policy efforts. “Any worries about government disputes or monitoring should be addressed through distinct, focused laws instead of blocking generally advantageous and otherwise non-controversial policies.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This content must not be republished, rebroadcast, rewritten, or redistributed.
For the latest news, weather, sports, and streaming video, head to The Hill.