Treasury Secretary Scott Bessent criticized the Senate for failing to move forward with the GENIUS Act, which he described as a critical opportunity to solidify U.S. leadership in stablecoin regulation. The bill collapsed due to last-minute Democratic opposition, driven by concerns over rushed amendments and perceived regulatory loopholes.
Industry figures, including Coinbase CEO Brian Armstrong, emphasized that crypto regulation remains a legislative priority, with renewed efforts anticipated soon. Bessent warned that the Senate’s decision jeopardizes the U.S.’s role in the global digital asset landscape, stating that stablecoins will face a fragmented state-level regulatory system instead of a unified federal framework.
The GENIUS Act aimed to create a federal structure for stablecoin issuance but failed a procedural vote after key Democratic senators blocked it. Concerns included national security, anti-money laundering provisions, and newly introduced language. Senator Mark Warner (D-VA) noted the bill was incomplete, while Senator Elizabeth Warren expressed fears that passing it without safeguards might enable corruption.
Despite the setback, there is optimism about reviving the bill, with discussions potentially resuming as early as next week once revisions are finalized. Proponents argue that digital assets represent the future and that the U.S. must lead in this space.
— new from Decrypt