A bipartisan bill aimed at advancing and regulating stablecoins was blocked in the Senate on Friday after a shift in stance by Democrats. Senators Elizabeth Warren and Minority Leader Chuck Schumer mobilized their party against the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act prior to the Senate floor vote, according to GOP leadership sources.
Senator Tim Scott, co-sponsor of the bill, criticized Democrats for prioritizing partisanship over policy. He accused them of obstructing innovation by blocking bipartisan legislation that could benefit the U.S. economy. Scott expressed disappointment, suggesting that the opposition was driven more by a desire to hinder former President Trump’s agenda than by issues with the bill’s content.
Senator Ruben Gallego, who initially supported the GENIUS Act in committee, attempted to move a vote forward, but Warren objected. Gallego argued that the bill, despite its imperfections, had been improved through bipartisan efforts, enhancing customer protections and addressing national security concerns.
The bill intended to align stablecoins with the U.S. dollar to reduce market volatility and legitimize the cryptocurrency industry. Senate Majority Leader John Thune suggested that Democratic opposition might be aimed at denying a Republican victory rather than concerns over the bill itself.
One of the central reasons for Democratic resistance is the belief that the bill could indirectly benefit President Trump due to potential ties to a stablecoin connected to him. Thune expressed frustration, implying that Democrats were shifting their goals, which he found disappointing.
