The Treasury Secretary criticized the Senate for not supporting a major crypto regulation bill. Secretary Scott Bessent called out the Senate for stonewalling the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act. On his X post, Bessent wrote: “The Senate missed an opportunity to provide that leadership today by failing to advance the GENIUS Act.”
“This bill represents a once-in-a-generation opportunity to expand dollar dominance and U.S. influence in financial innovation.” He reiterated that the world needs America to spearhead stablecoin adoptions before it is embraced globally. Without US influence in the financial sector, “stablecoins will be subject to a patchwork of state regulations instead of a streamlined federal framework that is more conducive to growth and competitiveness.”
The bill would have been the first regulatory framework for issuers of stablecoins, pegged to the dollar, had it successfully cleared the floor. However, it was stonewalled with 48-49. Among those who voted against the bill were Sens. Josh Hawley, R-Mo…, and Rand Paul, R-Ky.., joined by all Democrats present in opposing the procedural vote. Senate Majority Leader John Thune, R-S.D., also voted “no”.
For the bill to pass through to the final stage of the Senate, it needed 60 votes with bipartisan support, as there were only 53 Republicans: 47 Democrats. The resistance against this motion was evident weeks before the vote was held. In particular, 9 Democrats got together and signed a joint letter opposing the current version of the bill.
In the letter, the Democrats stated “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 was followed by a walkout of the hearing led by House Financial Services Committee ranking member Maxine Waters, a couple of days later.
Interestingly, even amidst rising resistance and an obvious loss on the cards, the Senate Republicans filed cloture on Tuesday and went for a vote on Thursday.
