Bipartisan stablecoin legislation failed to overcome a 60-vote filibuster hurdle in the Senate on Thursday to begin debate on the so-called GENIUS Act that would establish a regulatory framework for digital coins.
The failed vote presented a stunning setback for the first-of-its-kind measure after last-minute opposition from a bloc of crypto-friendly Democrats derailed months of talks.
The vote failed 48-49, largely along party lines, as the two sides continued negotiations.
“The GENIUS Act would implement light-touch and tailored standards for stablecoin issuers so consumers can trust who they’re doing business with,” Senate Majority Leader John Thune (R-SD) said in floor remarks. “Reserve requirements would give consumers confidence in the value of the stablecoins that they hold. And the bill’s enforcement provisions would provide companies with clarity on what the rules are and ensure accountability for any violations.”
Thune later told reporters, “At some point, they’re going to have to take yes for an answer,” referring to Democratic holdouts.
The legislation would create rules for stablecoins, which are cryptocurrencies with value tied to an underlying asset, such as gold or fiat currency, such as the U.S. dollar. Democrats want to add language addressing money laundering, foreign issuers, and risks to the U.S. financial system. Sen. Cynthia Lummis (R-WY) acknowledged that the Trump family’s investments were an impediment to negotiations.
Some Democrats want guardrails prohibiting President Donald Trump and his family from profiting from their cryptocurrency business ventures. Separate legislation from Senate Minority Leader Chuck Schumer (D-NY) and Sen. Jeff Merkley (D-OR) would do just that and extend to members of Congress.
Sen. Kirsten Gillibrand (D-NY) said she was “very hopeful” and “very optimistic” on the state of negotiations, as others criticized GOP leadership for plowing ahead with the vote.
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“There is actual negotiation happening. I think that negotiation should be allowed to happen and take the time needed to be able to do so,” Sen. Andy Kim (D-NJ) told the Washington Examiner on the eve of the vote. “I see no reason why this vote has to happen tomorrow.”
Lummis and Sen. Bill Hagerty (R-TN) are among the Republicans who have spent months negotiating language to shore up Democratic support, only to face 11th-hour heartburn from their side of the aisle. Sen. Josh Hawley (R-MO) had concerns over Big Tech, while others, such as Sen. Rand Paul (R-KY), were inclined to oppose from the start.