Senate's initial vote on the proposed GENIUS stablecoin legislation falls through, despite noted advancement
A political standoff in the US Senate over the GENIUS Act, a bill aimed at regulating stablecoins, has been brewing in recent days. The bill, which has already passed both the Senate and the House and was signed into law by President Trump in July 2025, faced a setback in the form of a procedural vote failure earlier in the House.
The vote in question was about cloture, or an agreement to avoid endless debate (filibuster), which requires the support of 60% of the senators present. The initial vote was 49 in favor and 48 against, but Senate leader John Thune changed his vote to no. This move was seen as a strategy to allow for further debate and negotiations.
The Democrats, led by Senator Ruben Gallego, had expressed concerns about the bill's provisions on anti-money laundering, national security, and the overall safety of the financial system. In response to these concerns, the bill had undergone six iterations with many modifications made to satisfy Democrat demands. However, a group of ten senators, including Gallego, issued a joint statement saying they could not support the bill in its updated form.
Senator Thune accused the Democrats of obstructing the passage of the GENIUS Act, suggesting that their actions were more about politics than the bill itself. He also questioned if the Democrats' actions were about the bill or simply obstructing for political reasons. Senator Warren, who has expressed concerns about President Trump's conflicts of interest with crypto, is believed to have objected to postponing the cloture vote, which would have required unanimous consent.
Senator Gallego, however, requested postponing the vote until Monday for debate. He also thanked the Republicans for their efforts to improve the content of the GENIUS Act. Republican senators Josh Hawley and Rand Paul, surprisingly, voted with the Democrats.
Meanwhile, the Trump family's stablecoin USD1 was used for a $2 billion payment by a UAE firm, chaired by the country's national security adviser and brother of the President. This development has added fuel to the political fire surrounding the GENIUS Act.
The GENIUS Act, despite facing political tension, has already become law. The bill's journey through the Senate and the House, and its eventual signing into law by President Trump, marks a significant step forward in the regulation of stablecoins in the United States. The coming days will likely see further debates and negotiations as the Senate works to address the Democrats' concerns and move the bill forward.
- The politics surrounding the GENIUS Act, aimed at regulating stablecoins, has been volatile, with a setback caused by a failed cloture vote in the House.
- Senator Thune criticized the Democrats for obstructing the passage of the GENIUS Act,claiming their actions were more about politics than the bill itself.
- Contrary to Thune's claims, Senator Gallego, a Democratic leader, supported further debate and negotiations to address concerns about the bill's provisions on anti-money laundering, national security, and the financial system's safety.
- The GENIUS Act, already in law, will continue to face debate and negotiations as the Senate works towards satisfying the concerns of both Democrats and Republicans, while maintaining stability in the US banking, finance, and general-news sectors, as well as ensuring insights into the emerging stablecoin market.
