Genius Act Delays in Senate as Legislators Consider New Proposal Next Week

The Senate has rejected the motion to invoke cloture regarding the consideration of the GENIUS Act, a bill designed to regulate stablecoins in the United States.

The outcome was determined by a narrow margin, with 49 Democrat senators opposing the motion and 48 voting in favor.

Senate Majority Leader John Thune criticized Democrats for employing the filibuster for the fourth time this year, questioning their motives for doing so.

Thune remarked:

“This is a matter that transcends party lines. This bill has been developed through a bipartisan approach from the outset. If the Democrats were genuinely seeking further amendments, they could have voiced those concerns on the floor. Their only requirement was to support cloture.”

Senator Tim Scott expressed that the rejection of the motion hindered progress, asserting that both parties lost a chance to collaborate effectively to bring about significant change for Americans.

Treasury Secretary Scott Bessent pointed out that the Senate’s decision meant missing an essential chance to assert “American leadership,” which he believes is crucial for the global success of cryptocurrency.

Bessent commented:

“This legislation stands as a rare chance to enhance the dollar’s dominance and American influence in financial advancement. Failing to pass it means that stablecoins will face an inconsistent array of state rules rather than a cohesive federal framework which supports growth and competitiveness.”

Senator Cynthia Lummis expressed her disappointment over the voting outcome in a statement, stating she felt “deeply let down” by the results.

She continued:

“It’s important to recognize that digital assets represent the future, and it is vital for America to take the lead. I appreciate the efforts of President Trump, Senator Gillibrand, Leader Thune, Chairman Scott, and Senator Hagerty for their leadership and commitment to preserving digital asset enterprises and jobs in the U.S.”

GENIUS Act postponed

Alex Thorn, head of research at Galaxy Digital, indicated that there is hope for a revised version of the bill to be presented soon, potentially as early as Monday.

Taylor Barr, leading government affairs at the Digital Chamber, stated that the rejection of the cloture motion does not signify the end of the effort, emphasizing that “digital assets are here to stay.”

Jake Chervinsky, chief legal officer at Variant Fund, noted that the decision isn’t a final “no,” but rather a “not yet,” suggesting that various factors contributed to its failure on May 8, but further bipartisan collaboration could overcome these hurdles.

Miller Whitehouse-Levine, CEO of Solana Policy Institute, voiced optimism about a successful bipartisan initiative, asserting that it can push the GENIUS Act across the finish line.