The Demise of the GENIUS Act: A Crypto Setback
Senate Rejects GENIUS Act: crucial vote for Stablecoin Legislation falls through
Here's the sad tale of the once promising GENIUS Act, which faced a gruesome end in the Senate recently. The bill, aimed at designing a legal framework for stablecoins, faltered at a key procedural vote. It's the crypto world's worst nightmare, and the repercussions may spread like wildfire throughout Capitol Hill.
Pro-crypto Dems Call off the Vote
A handful of pro-crypto Democrats refused to back the motion to end debate on the bill, putting a major roadblock in its path. Senators like Ruben Gallego (D-AZ), Mark Warner (D-VA), Lisa Blunt Rochester (D-DE), Andy Kim (D-NJ), Kirsten Gillibrand (D-NY), and Angela Alsobrooks (D-MD) joined the anti-cloture club. It's a shocking turnaround for some who were initial co-sponsors of the bill.
Sen. Warner voiced his concerns following the failed vote, stating, "For the GENIUS Act to move forward, the text needs to be finished."
The Bill's Future Looks Murky
The GENIUS Act, which promises to outline regulations for stablecoin issuance in the U.S., now faces slimmer chances of passage. Additional crypto-related bills, including a House equivalent of the GENIUS Act and chamber-specific market structure bills, may also suffer from collateral damage.
Just a week ago, the bill looked poised for a unanimous 60-vote victory, but things soon took a turn for the worse. Leaked, hastily drafted versions of the bill and questionable crypto announcements from the Trump family fueled skepticism among Democrats, prompting some to pull the plug.
A Battle of Egos and Interests
The last push to revive support stalled in the past 24 hours. White House officials and Republican Senate leadership warned wavering Democrats of potential political backlash from powerful crypto super PACs. Apparently, these heavy-handed tactics didn't work their magic.
At this point, crypto policy leaders fear the GENIUS Act could erase the sector's legislative progress, putting the industry's future on shaky ground.
Billions Down the Drain?
For years, the crypto industry has shelled out billions and poured countless hours into gaining political favor in Washington D.C. The last few months saw crypto emerge as a Congressional priority for 2025. But after this turbulent ride, that brief window of fortune is teetering precariously once again.
Leaked comments by Bo Hines, executive director of the President's Working Group on Digital Assets, on the social media platform X.
Editor's Note: This story was amended to include comments from Warner and Hines, following the initial publication.
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- The demise of the GENIUS Act in the Senate has been a bitter blow for the crypto market, as the bill aimed to provide a legal framework for stablecoins.
- Pro-crypto Democrats, such as Senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester, Andy Kim, Kirsten Gillibrand, and Angela Alsobrooks, played a significant role in the bill's failure by refusing to back the motion to end debate, despite some being initial co-sponsors.
- Senator Mark Warner expressed concerns over the bill's failure, stating that for the GENIUS Act to move forward, the text needs to be completed.
- The failed passage of the GENIUS Act may affect other crypto-related bills, including the House equivalent of the GENIUS Act and chamber-specific market structure bills.
- The bill's collapse came about following leaked, hastily drafted versions of the bill and questionable crypto announcements from the Trump family, which fueled skepticism among Democrats, causing some to withdraw their support.
- White House officials and Republican Senate leadership attempted to revive support for the bill by warning wavering Democrats of potential political backlash from powerful crypto super PACs, but these efforts failed.
- The failure of the GENIUS Act could potentially erase the sector's legislative progress, and the industry's future may once again be in jeopardy after years of investment and efforts to gain political favor in Washington D.C.
