GENIUS Act Faces Setback in U.S. Senate Amid Cryptocurrency Regulation Debate

According to Cointelegraph, the Guiding and Establishing National Innovation for US Stablecoins of 2025 Act, commonly referred to as the GENIUS Act, encountered a significant hurdle in the United States Senate on May 8. The bill, which aimed to enhance regulatory clarity for digital assets, particularly stablecoins, failed to pass cloture, marking a setback for cryptocurrency regulation efforts in the country. Sponsored by Senator Bill Hagerty and co-sponsored by Senators Tim Scott, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks, the bill faced unexpected opposition from Senate Democrats. Concerns were raised regarding U.S. President Donald Trump’s involvement in cryptocurrency ventures, prompting last-minute amendments to the bill. These amendments included stricter requirements for stablecoin issuers and additional provisions for Anti-Money Laundering to address the concerns of Senate Democrats. The GENIUS Act was perceived as a bipartisan initiative designed to bolster the regulatory framework for digital assets in the United States. Its primary focus was on stablecoins used for payments, which were viewed as a means to extend the dominance of the U.S. dollar internationally while avoiding more contentious cryptocurrency topics. Despite these intentions, the bill's failure to advance has sparked criticism from Senate Majority Leader John Thune. He expressed frustration with the Democratic opposition, stating, “Democrats have been accommodated every step of the way […] frankly, I just don’t get it.” As the situation develops, further updates will be provided to shed light on the future of cryptocurrency regulation in the United States.