logo

Senate Rejects GENIUS Act, Keeping Stablecoin Rules in Limbo

By: crypto economy|2025/05/09 20:00:21
0
Share
copy
TL;DRThe U.S. Senate failed to advance the “GENIUS Act”, a bipartisan bill aimed at regulating stablecoins. The rejection came after Democrats withdrew their support, concerned about Donald Trump’s links to a new crypto project. Republicans accuse Democrats of putting political interests first, jeopardizing America’s leadership in the global crypto asset market.The long-awaited progress of the “GENIUS Act”, legislation designed to establish clear rules on stablecoins in the U.S., came to a halt after a close Senate vote on May 8. With only 49 votes in favor, the bill fell short of the 60 needed to advance, leaving the crypto sector in a regulatory limbo. This setback is particularly significant considering it was the first major regulatory effort to legitimize and protect the digital asset industry in the country. Moreover, international financial circles are closely watching, as a U.S. framework could have laid the groundwork for global standards, boosting investor confidence and accelerating the mass adoption of these digital assets.Republicans Denounce Political Blockade of Crypto ProgressThe shift in stance by Democratic senators came after reports emerged about Donald Trump’s connection to USD1, a stablecoin launched by World Liberty Financial, a company allegedly tied to his family, which also secured a staggering $2 billion investment from the United Arab Emirates. Democrats argue that the GENIUS Act lacked sufficient safeguards against money laundering and conflicts of interest. However, Republicans claim the rejection was a maneuver to prevent Trump from scoring a political win in the crypto space.Senator Cynthia Lummis, known for her pro-crypto stance, expressed her “deep disappointment” at the bill’s failure, stating that the U.S. is wasting the opportunity to remain competitive against powers like China. Meanwhile, Senator Bill Hagerty, the bill’s main sponsor, sharply criticized Democrats for unilaterally surrendering American digital leadership to the Chinese Communist Party due to fear from their party’s radical wing.Crypto Market Reacts With Uncertainty and ResilienceAlthough this setback leaves stablecoin issuers without clear regulatory guidance, many analysts within the crypto ecosystem see this turbulence as yet another test of the disruptive potential of decentralized finance. Far from being discouraged, several market players believe the sector will continue to innovate and advance, regardless of Washington’s legislative pace. Additionally, some Republican lawmakers are already planning to reintroduce the bill next week, keeping alive the possibility of reaching a consensus that, in the long run, will strengthen the market and provide security for consumers.

You may also like

a16z Crypto: 9 Charts to Understand the Evolution Trends of Stablecoins

Stablecoins are evolving from trading tools into universal payment infrastructure, and this process is quieter and more thorough than most people expected.

Refutation of Yang Haipo's "The End of Cryptocurrency"

This may be the true test of cryptocurrency. It's not about whether the price has reached a new high, nor about who will achieve financial freedom in the next bull market, but rather whether, after all the grand narratives have been washed away by cycles, it can still leave behind some simpler, more...

Can a hairdryer earn $34,000? Interpreting the reflexivity paradox of prediction markets

Prediction markets are essentially betting on reality, and when participants can access or even influence this path earlier, the market no longer just reflects reality but begins to shape it in return.

6MV Founder: In 2026, the "landmark turning point" for crypto investment has arrived

"I will deploy funds in 2026, so I will tell you this is the best year in history."

Abraxas Capital Mints $2.89 Billion USDT: Liquidity Boost or Just More Stablecoin Arbitrage?

Abraxas Capital just received $2.89 billion in freshly minted USDT from Tether. Is this a bullish liquidity injection for crypto markets, or is it business as usual for a stablecoin arbitrage giant? We analyze the data and the likely impact on Bitcoin, altcoins, and DeFi.

A VC from the Crypto world said AI is too crazy, and they are very conservative

Amid the Crypto frenzy and with investors who once missed out on Pinduoduo, a new AI fund called Impa Ventures was established, rejecting bubble narratives and adhering to a conservative "problem-first" strategy to seek real business value.

Popular coins

Latest Crypto News

Read more