Senate Vote Falls Short on Stablecoin Regulation Bill
The U.S. Senate voted against advancing a landmark stablecoin regulation bill on Thursday, exposing deep political fractures over crypto policy—especially around Donald Trump’s growing influence in the space. Despite bipartisan talks and the bill’s formal name—The GENIUS Act—the vote failed at the cloture stage, with prominent Republicans like Sen. Josh Hawley, Sen. Rand Paul, and even Senate Majority Leader John Thune voting no. Thune later explained that his vote was a procedural move to preserve the opportunity to revisit the bill.
By a vote of 48-49, the #Senate did not invoke cloture on the motion to proceed to S. 1582, GENIUS Act.
— Senate Press Gallery (@SenatePress) May 8, 2025
Senators Hawley, Paul, and Thune voted No and Leader Thune entered a motion to reconsider.
Senators not voting: Moran, Smith, and Wicker.
By a vote of 48-49, the #Senate did not invoke cloture on the motion to proceed to S. 1582, GENIUS Act.
— Senate Press Gallery (@SenatePress) May 8, 2025
Senators Hawley, Paul, and Thune voted No and Leader Thune entered a motion to reconsider.
Senators not voting: Moran, Smith, and Wicker.
Trump’s Crypto Presence Adds Political Turbulence
While the bill aimed to implement basic guardrails—like 100% reserve backing, audits, and restrictions on foreign-issued stablecoins—it became a casualty of rising Democratic anxiety over Trump’s entrenched crypto interests. Trump and his family have recently launched memecoins, helped kickstart World Liberty Financial, and hosted a crypto fundraiser dinner with tickets starting at $1.5 million per plate. For many Democrats, that raised red flags.
Democrats Voice Unease Over Bill’s Final Language
Even beyond Trump, some Senate Democrats were uneasy about the bill’s content and process. Sen. Mark Warner refused to support it due to unfinished text, while Sen. Raphael Warnock and Sen. Lisa Blunt Rochester cited a lack of clarity on the bill’s final form. The Senate Banking Committee had championed the bill as a consumer-first regulatory framework, but critics said it didn’t go far enough in targeting foreign issuers and anti-money laundering protections.
What’s in the GENIUS Act?
- Requires 100% reserve backing for stablecoins (USD or similarly liquid assets).
- Mandates annual audits for issuers with $50B+ market cap.
- Prohibits foreign stablecoin issuance in the U.S., while allowing circulation on secondary markets.
- Allows the Treasury Department to crack down on non-compliant foreign issuers.
- Clarifies that members of Congress and senior officials cannot profit from stablecoin issuance under existing ethics laws.
The House Financial Services Committee advanced a similar bill in April, but disagreements over state vs. federal oversight and foreign issuer treatment remain unresolved.
What's Next for Stablecoin Legislation?
The bill isn’t dead—but it’s on ice. Behind-closed-door negotiations continued all week, and Sen. John Thune’s procedural vote leaves room to reintroduce it soon. Meanwhile, Bo Hines, Executive Director of the Presidential Council of Advisers on Digital Assets, issued a warning to Democrats:
