Senate Narrowly Defeats GENIUS Act, Clouding Crypto Bill Future

Cryptocurrency Measure Rejected by Senate

  • Senate rejects the GENIUS Act, a major cryptocurrency regulation bill, by a single vote.
  • Bipartisan negotiations falter over concerns about anti-money laundering and national security provisions.
  • Defeat signals challenges ahead for future crypto legislation, according to Sen. John Thune.

The United States Senate narrowly voted down the GENIUS Act, a proposed law to regulate cryptocurrency, on Thursday. The bill, aimed at establishing a regulated "stablecoin" whose value would be tied to the U.S. dollar, was defeated by just one vote after several months of bipartisan discussions.

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The final vote on the measure was 49 to 48, with Republican Senators Josh Hawley and Rand Paul joining Democrats to oppose the bill. According to CNN, nine Democrats expressed in a joint letter that they required additional changes before they could support the legislation. They called for stronger measures relating to anti-money laundering, restrictions on foreign companies, and national security.

In their open letter, the group of Democrats wrote that "the bill as it currently stands still has numerous issues that must be addressed, including adding stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability for those who don’t meet the act’s requirements." This statement was made public ahead of the final vote.

Bo Hines, executive director of President Donald Trump‘s Working Group on Digital Assets, criticized Democrats’ opposition, posting on X that "Democrats decided to play partisan politics today… They have once again proven that they are not pro-innovation and they do not put the interests of the American people first." However, Democrats maintained that further safeguards were necessary to address potential risks. Senator Mark Warner of Virginia stated on X that he could not recommend the current version to his colleagues and would require changes to support the bill.

Despite initial bipartisan backing, both parties continued working on the bill up to the floor debate, as reported by CNBC. President Trump has recently taken a more active interest in expanding the United States’ presence in digital assets and cryptocurrency, as noted by UPI.

After the vote, Senator John Thune, Republican of South Dakota, warned that Thursday’s result signals a difficult path ahead for similar crypto-related bills in Congress, according to Politico.

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