U.S. Senate Fails to Pass Stablecoin Regulation Bill Due to Democratic Opposition

The U.S. Senate failed to pass the '2025 U.S. Stablecoin National Innovation Act (GENIUS Act)', which aimed to clarify stablecoin regulations, in a vote on the 8th (local time).

According to the cryptocurrency-focused media outlet iHodl.com on the 9th, the bill was thwarted due to last-minute opposition from the Democratic Party. The involvement of the Trump family in cryptocurrency businesses emerged as a contentious issue just before the vote, raising concerns about potential connections and fueling opposition.

The GENIUS Act was a bipartisan legislative proposal introduced by Republican Senator Bill Hagerty, with co-sponsorship from Senators Tim Scott, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks. The bill aimed to establish federal standards for the issuance of payment stablecoins and strengthen the status of the U.S. dollar in the digital asset market.

The bill had previously passed the Senate Banking Committee but was ultimately defeated in the full Senate vote due to Democratic senators raising concerns about potential links between President Trump and cryptocurrency businesses. As a result, the bill did not meet the final approval requirements and was rejected.

The media reported, "Although anti-money laundering (AML) requirements and regulatory standards for stablecoin issuers were added at the end of the bill, it was insufficient to prevent Democratic opposition," adding, "This defeat may lead to a prolonged legislative gap regarding stablecoins in the U.S."