The GENIUS Act did not pass the vote — and with it, the entire agenda stalled
The Senate's attempt to approve the GENIUS bill on stablecoins ended in failure. A procedural vote on May 9 showed that even a simple majority of 51 votes was not reached. The outcome was 49 in favor, 48 against. And the opposition came not only from Democrats but also from three Republicans.
A project that seemed to be on track unexpectedly became a hostage to political dynamics. Now the market is waiting to see if either chamber of Congress can advance new regulation.
Why the failure of GENIUS is a troubling signal for the entire industry
Initially, the GENIUS Act was supposed to be a compromise. It allowed both banks and non-bank organizations to issue stablecoins, defined the rules for reserving, and delegated oversight to federal and state regulators.
But the political backdrop proved stronger than the content. The topic of Donald Trump intervened. Democrats began to perceive the project as an attempt to legitimize initiatives related to the meme coin $TRUMP and the World Liberty Financial platform. Both initiatives are closely associated with the Trump family and have already raised suspicions of a conflict of interest.
"If we can't even pass this bill, more complex topics — such as the overall market structure — will be even harder to push forward," noted Bitwise Chief Investment Officer Matt Hogan.
The Senate was divided, and not only because of Trump
Even among Republicans, there was no unity. Senators Rand Paul and Josh Hawley spoke out against it. One questioned the need for federal regulation. The other questioned the project's safety for consumers, especially in light of Meta's renewed interest in stablecoins.
At the same time, Senate Majority Leader John Thune voted against it for strategic reasons — to be able to reintroduce the bill. He emphasized that GENIUS is just the first step, not the final word on digital assets.
Meanwhile, the House of Representatives is advancing its own version — the STABLE Act. It has already cleared committee in April and is awaiting a vote.
