A key legislative effort to establish a regulatory framework for U.S. dollar-pegged cryptocurrencies known as stablecoins hit a significant roadblock in the Senate on Thursday, casting fresh uncertainty over the future of digital asset regulation in the United States.
The bill, formally known as the GENIUS Act, failed to secure the 60 votes required to advance to a full Senate vote, with only 49 senators in favour. The shortfall marks a setback for the cryptocurrency industry, which had heavily lobbied for federal oversight tailored to digital assets. The sector invested more than $119 million in support of pro-crypto candidates during last year’s elections and had framed the issue as a rare area of bipartisan consensus.
Stablecoins—cryptocurrencies typically pegged 1:1 to the U.S. dollar—have become a central component of the digital asset ecosystem, used to transfer funds between tokens and exchanges. Proponents argue they could also play a transformative role in real-time payments.
Despite earlier momentum and broad industry support, the GENIUS Act has faced mounting resistance from Senate Democrats, particularly amid increasing scrutiny of former President Donald Trump’s crypto-related ventures. Last week, Trump-linked firm World Liberty Financial announced that its stablecoin would be used by an Abu Dhabi investment firm for a $2 billion investment in Binance, drawing concerns over foreign influence and regulatory gaps.
Two Republican senators—Josh Hawley and Rand Paul—joined Democrats in opposing the procedural vote on Thursday. Meanwhile, Senator Mark Warner, a Democrat who previously backed the bill in committee, said the legislative text remained incomplete and could not yet be responsibly endorsed.
“While we’ve made meaningful progress on the GENIUS Act, the work is not yet complete,” Warner said in a statement, citing unresolved issues related to foreign stablecoin regulation and anti-money-laundering safeguards.
A coalition of Senate Democrats said Republicans had failed to negotiate on these critical concerns. Their stance reflects a broader unease within the party regarding the expanding role of crypto in global finance and national security.
Senate Majority Leader John Thune criticized Democrats after the vote, accusing them of obstructing what could have been a bipartisan victory for the White House. “Not every bill that comes to the floor is a final bill,” Thune said in a floor speech following the vote.
With this latest impasse, the path forward for stablecoin legislation remains unclear, despite its initial promise and growing urgency in the rapidly evolving digital financial landscape.
