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Home Newsbytes

Stablecoin legislation hits roadblock in Senate

May 8, 2025
Reading Time: 1 min read
White paper: Banks have clear legal authority to issue stablecoins

A bill to create a regulatory framework for stablecoins stalled in the Senate today after it failed to generate enough votes to advance. Afterward, Senate Republicans vowed to continue working to pass the legislation.

The Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS, Act would establish procedures for institutions seeking licenses to issue stablecoins and establish regulatory standards for stablecoin issuers. Senate Majority Leader John Thune (R-S.D.) expedited a vote on legislation after it cleared the Senate Banking Committee, but bipartisan support for the bill evaporated in recent days.

A vote to invoke cloture on the GENIUS Act failed after Democrats demanded several changes be made, including language to prevent government officials from profiting from stablecoin ventures. Democrats pointed to recent business ventures by President Trump and his family in digital assets as the primary reason the language was needed. They also called for language to prevent “Big Tech” firms from issuing stablecoins and more consumer protections.

“If the majority wants to establish a durable legal framework for digital assets, rather than just try to score political points, they will take these concerns seriously and agree to improve the bill,” Senate Banking Committee Ranking Member Elizabeth Warren (D-Mass.) said in a statement before the vote.

Committee Chairman Tim Scott (R-S.C.), who was the lead sponsor on the bill, blasted Democrats for a “disappointing display of political gamesmanship that puts partisan politics above policy and obstruction above innovation.”

“Entrepreneurs and developers want clarity so they can build here in the United States of America, not be pushed offshore into a regulatory environment that is confusing,” Scott said.

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