US Senate Fails to Pass 2025 Stablecoin Innovation Act After Democratic Turnaround
On May 8, the "US Stablecoin Innovation Guidance Act of 2025" (GENIUS Act) did not receive approval in the United States Senate, generating implications for the cryptocurrency regulatory landscape in the country. The legislative initiative, proposed by Senator Bill Hagerty and supported by Tim Scott, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks, faced last-minute opposition from the Democratic Party, primarily motivated by concerns related to the cryptocurrency ventures of former President Donald Trump.
In response to the Democratic objections, the text of the bill underwent revisions, incorporating stricter anti-money laundering requirements for stablecoin issuers. The bill was considered a bipartisan effort to establish a more defined regulatory framework for digital assets, with a specific focus on stablecoins used for payments. The underlying intention was to strengthen the international influence of the US dollar, avoiding more controversial topics within the crypto ecosystem. Senate Majority Leader John Thune expressed criticism of the Democrats' stance, arguing that their concerns were duly considered throughout the legislative process. The situation remains dynamic, and new information is expected to emerge as events unfold.