The U.S. Senate did not advance the GENIUS Act on Thursday in a nail-biting vote, marking a setback to establishing the first-ever set of cost stablecoin rules.
Senate Delivers Blow To Stablecoin Invoice
Initially introduced by Senator Bill Hagerty (R-TN) in February, the Guiding and Establishing Nationwide Innovation for U.S. Stablecoins (GENIUS) Act was co-sponsored by Chairman Tim Scott (R-SC) and Subcommittee on Digital Belongings Chair Cynthia Lummis (R-WY).
After receiving bipartisan assist, Hagerty’s laws fell 48-49 on the Senate flooring on Thursday, prompting a wave of disappointment from key members of the cryptocurrency neighborhood.
“This invoice represents a once-in-a-generation alternative to broaden greenback dominance and U.S. affect in monetary innovation,” U.S. Treasury Secretary Scott Bessent mentioned in a Might 8 X publish.
“With out it, stablecoins can be topic to a patchwork of state rules as an alternative of a streamlined federal framework that’s extra conducive to development and competitiveness,” he added.
“I’m deeply disenchanted that we have been unable to move this essential, bipartisan-crafted stablecoin laws at this time,” Lummis mentioned in a press release. “Make no mistake, digital property are the longer term and America should prepared the ground.”
All Eyes On Trump’s Crypto Ventures
The U.S. Senate’s rejection of the GENIUS Act comes amid a dramatic partisan divide over crypto policy and U.S. President Donald Trump’s ties to cryptocurrencies in each chambers of Congress.
Rating member of the Home Monetary Companies Committee Maxine Waters stormed out of a high-profile crypto listening to alongside a number of different Home Democrats on Tuesday, citing concerns over Trump’s crypto affiliations and federal authorities management.
Final week, Trump confirmed he could be internet hosting an unique gala dinner for the highest 220 buyers of his namesake meme coin, $TRUMP, ushering in elevated scrutiny over potential conflicts of curiosity.
Information additionally broke that the Trump-affiliated World Liberty Monetary’s newly launched stablecoin USD1 could be used to finalize a deal between Abu Dhabi-based funding agency MGX and Binance, additional angering his Democratic opponents.
The publish GENIUS Act Stalls After 49–48 Senate Vote, Stablecoin Framework in Limbo appeared first on Cryptonews.
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