**Senate Democrats Block GENIUS Stablecoin Bill by Single Vote**

The U.S. Senate narrowly blocked the GENIUS Act, a bipartisan bill aimed at regulating stablecoins, in a 48-49 procedural vote on May 8, 2025. All Democrats and three Republicans—Senators Rand Paul, Josh Hawley, and John Kennedy—voted against advancing the legislation, effectively halting its progress.

Initially supported by both parties, the bill faced growing Democratic opposition due to concerns over former President Donald Trump's ties to the cryptocurrency industry. In particular, Trump's involvement with World Liberty Financial's USD1 stablecoin, which recently attracted a $2 billion investment from an Abu Dhabi-backed firm, drew criticism over potential conflicts of interest.

Senator Elizabeth Warren argued that the bill could enhance what she called “Trump’s corruption” and weaken consumer protections. In response, Senator Jeff Merkley introduced the End Crypto Corruption Act, which would bar federal officials and their families from investing in or promoting digital assets.

Senate Majority Leader John Thune expressed frustration with the vote, stating that the bill had gone through multiple revisions to meet Democratic concerns. Despite those efforts, the final text remained incomplete, prompting some moderates like Senator Mark Warner to withdraw their support.

The failed vote represents a major setback for stablecoin regulation in the U.S., though negotiations are expected to continue in hopes of crafting a new version of the bill.