Crypto industry brushes off failed stablecoin vote
The crypto industry is brushing off a failed vote on a stablecoin bill in the Senate, underscoring recent progress and their hope that this isn't the end of the line for crypto legislation.
Democrats on Thursday blocked the Senate from moving forward with consideration of the GENIUS Act, which would create a regulatory framework for payment stablecoins.
The bill was voted down 48-49, falling short of the 60 votes required to bring it closer to final passage. The vote was split almost entirely along party lines, after bipartisan support for the legislation fell apart last week.
'It's gonna live to fight another day,' Kara Calvert, vice president of U.S. policy at Coinbase, told The Hill.
'Would I have liked to see the vote pass? Absolutely. Would that have made the day better? Absolutely. But I didn't walk away thinking this bill is going to die or this issue is going away,' she added.
A contingent of crypto-friendly Democrats pulled their support for the GENIUS Act after Senate leadership moved to expedite a vote on the legislation last week.
The Democratic senators, several of whom voted to advance the bill out of the Senate Banking Committee in March, argued that Republicans had cut off negotiations prematurely.
They said they still had concerns about provisions on anti-money laundering, national security and a handful of other issues and could not support the current version of the bill.
The two sides engaged in several frantic days of negotiations and appeared to be nearing a deal Thursday morning ahead of the vote. However, several Democrats said they had yet to see new bill text.
Sen. Ruben Gallego (D-Ariz.), the top Democrat on the Senate Banking subcommittee on digital assets, asked to delay the vote until Monday to give senators more time. However, his request was rejected, and Democrats voted down the bill.
Senate Majority Leader John Thune (R-S.D.), who lambasted Democrats for blocking the bill, ultimately changed his vote to no Thursday in a procedural move that allows him to bring the measure up again.
Cody Carbone, CEO of crypto advocacy group The Digital Chamber, described Thursday's vote as a 'setback' but argued it is 'far from a defeat,' noting that leadership left open the door to reconsider the bill.
'Last-minute negotiations prove the momentum is real, and that lawmakers on both sides understand the urgency,' Carbone said in a statement.
'The Digital Chamber will keep working with Republicans and Democrats alike to get this across the finish line,' he added. 'Stablecoin legislation isn't a partisan issue, it's an economic and national security imperative. America can't afford to sit on the sidelines.'
The Blockchain Association's Kristin Smith similarly said the crypto industry group was disappointed in the vote but 'encouraged by the bipartisan engagement.'
'We urge that this debate continue in earnest and that our elected officials are reminded that the fundamental nature of stablecoin technology is both pro-consumer, providing access to 21st century financial technology, and pro-American, strengthening the global hegemony of the U.S. dollar,' she said in a statement.
Crypto legislation has gained new momentum under the Trump administration and Republican leadership in Congress, with the president and GOP lawmakers making stablecoin and market structure legislation a key priority.
Stablecoin legislation appeared to be sailing along prior to last week's partisan dispute. The GENIUS Act passed out of the Senate Banking Committee in March, while its House companion, the STABLE Act, advanced out of the House Financial Services Committee in April.
However, Trump's own crypto ventures also appear to be throwing a wrench in his legislative priorities.
The president and his family have continued to grow their crypto portfolio in recent months, with their crypto venture World Liberty Financial announcing last week that its new stablecoin would be used to complete a $2 billion transaction between Emirati firm MGX and crypto exchange Binance.
The announcement, along with Trump's other recent moves in the crypto space, have prompted concerns from Democrats that the president is attempting to profit off his office and opening up the U.S. government to foreign influence.
It also provided new fuel for opponents of the GENIUS Act in the Senate, while prompting Democrats to walk out of a hearing on market structure legislation in the House earlier this week.
The Bitcoin Policy Institute (BPI) pushed back on some of Democrats' concerns with the stablecoin bill Thursday, arguing it contains strong anti-money laundering provisions and suggesting conflict of interest concerns could be addressed in follow-up legislation.
'Recent political opposition to the GENIUS Act is misplaced, as it contains robust anti-money laundering measures applicable to both domestic and foreign issuers, and any concerns regarding governmental conflicts or oversight are best handled in separate, targeted legislation rather than obstructing broadly beneficial and otherwise uncontroversial policy,' Zack Shapiro, BPI's head of policy, said in a statement.
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