The U.S. Senate voted on Thursday to block the advancement of the GENIUS Act, dealing a blow to the crypto industry’s push for clearer regulations.
Analysts saw the setback as a significant blow to the digital assets sector, which has long urged lawmakers to establish clear rules for cryptocurrencies. According to Reuters, the industry spent over $119 million supporting pro-crypto congressional candidates in last year’s elections and had tried to frame the issue as bipartisan.
Despite months of negotiations between both parties and a previous win in the Senate Banking Committee, last-minute opposition from Senate Democrats prevented the act from moving forward. The procedural vote to begin debate ended in a 48-49 result, falling short of the 60 votes required.
Senator Mark Warner, a Democrat who had earlier supported advancing the bill out of the Senate Banking Committee, said in a statement: “While we’ve made meaningful progress on the GENIUS Act, the work is not yet complete, and I simply cannot in good conscience ask my colleagues to vote for this legislation when the text isn’t finished.”
What is the GENIUS Act?
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act is a proposed U.S. law designed to set clear rules for stablecoins digital currencies pegged to the U.S. dollar. It outlines who is allowed to issue these coins, requires them to be fully backed by cash or short-term government bonds, and mandates consumer protections such as regular audits and clear redemption rights. The aim is to foster innovation while ensuring stablecoins remain safe, transparent, and properly regulated.