U.S. Treasury Secretary Scott Bessent criticized the Senate’s decision to halt the GENIUS Act, amid concerns over President Trump’s growing involvement in crypto and specific aspects of the proposed stablecoin bill.
“For stablecoins and other digital assets to thrive globally, the world needs American leadership,” Bessent posted on X. “The Senate missed an opportunity to provide that leadership today by failing to advance the GENIUS Act.”
Bessent described the bill as a “once-in-a-generation opportunity” to expand dollar dominance and boost U.S. influence in financial innovation. He argued that without such legislation, stablecoins will remain governed by fragmented state rules rather than a unified federal approach that supports growth and global competitiveness.
The Senate Banking Committee had previously voted to advance the GENIUS Act in March. The bill requires stablecoins to have 100% reserve backing with U.S. dollars and similarly liquid assets, annual audits, and prohibits foreign issuance in the country.
The Senate voted 49-48 against the bill in its current form, with Senators Josh Hawley and Rand Paul joining Democrats in opposing the procedural vote. Democrats raised concerns about unfinished bill text, foreign issuer oversight, and anti-money laundering provisions. Senator Mark Warner stated he couldn’t support legislation that wasn’t yet finalized. Senate Majority Leader John Thune, despite voting no, said he did so to allow the bill to be reconsidered later.
Tensions deepened due to Trump’s personal and financial ties to crypto, including memecoin launches and crypto fundraisers, sparking accusations of conflict of interest. Some Democrats boycotted a crypto-focused House hearing this week, citing the president’s direct crypto holdings and influence over agencies. The House Financial Services Committee recently voted to advance a similar bill, the STABLE Act, with anti-money laundering and reserve requirements.
— new from The Block