U.S. Senate Postpones GENIUS Act Vote Amid Draft Gaps and Disagreements

The U.S. Senate failed to advance the GENIUS Act, a bill designed to set a federal framework for stablecoin regulation. During the May 8, 2025 vote, the motion to move the legislation forward received 48 votes in favor and 49 against—well below the 60-vote threshold required to bring the bill to the floor.

Key Provisions of the GENIUS Act

The bill proposed:

• 100% backing with U.S. dollars or other liquid assets
• Mandatory annual audits for projects with a market cap above $50 billion 
• A ban on foreign stablecoin issuance within the U.S. 
• Authorization for circulation strictly on secondary markets 

In addition, the bill granted the U.S. Treasury the power to sanction non-compliant or high-risk issuers.

Related: Warren Demands SEC Release Information on WLFI, Investigating Trump Ties

Why the Vote Was Delayed

Tensions in Congress escalated amid growing scrutiny of the Trump family’s involvement in crypto, raising potential conflict of interest concerns. 

Key points fueling the controversy include:

• The launch of TRUMP and MELANIA memecoins
• The introduction of the USD1 stablecoin under the Trump-linked World Liberty Financial project 
• A high-profile fundraising dinner supporting MAGA Inc., with ticket prices starting at $1.5 million

This combination of unresolved legislative language and political controversy led several senators to withdraw their support.

The GENIUS Act faced pushback from both Republicans and Democrats. Senators Josh Hawley and Rand Paul voted against the bill, joined by Senate Majority Leader John Thune, who flipped his initial “Yes” to a “No” to retain the option of reintroducing the bill at a later date.

I just have to say, frankly, I just don’t get it,

Thune said during remarks in Washington.

On the Democratic side, several former backers also walked back their support, including: 

• Ruben Gallego 
• Mark Warner 
• Raphael Warnock 
• Lisa Blunt Rochester
• Adam Schiff 

The senators called for stricter anti-money laundering measures and restrictions on foreign stablecoin issuers.

Related: Congressional Rift Widens as Democrats Boycott Joint Crypto Hearing

I simply cannot in good conscience ask my colleagues to vote for this legislation when the text isn’t yet finished,

said Senator Mark Warner of Virginia, speaking in Washington.

What’s Next for the GENIUS Act

A parallel bill is moving through the House of Representatives with similar provisions, though it differs in oversight mechanisms for stablecoin issuers. With the Senate rejecting the motion to end debate, lawmakers may continue negotiating privately and bring the bill back for a vote as early as next week.

Bo Hines, Executive Director of the Presidential Council of Advisers on Digital Assets, weighed in on X:

We have the opportunity to usher in the golden age of digital assets and secure America’s position as the crypto capital of the world.

While key provisions still require refinement and bipartisan alignment remains the central challenge, lawmakers could reach consensus in the coming days, provided the final text is clearly defined and consultations proceed on schedule.