U.S. Treasury Secretary Scott Bessent lambasted the Senate’s decision on Thursday to halt the progress of the GENIUS Act amid rising tensions over President Trump’s increasing crypto involvement and concerns about specific aspects of the proposed stablecoin bill.
“For stablecoins and other digital assets to thrive globally, the world needs American leadership,” Bessent posted on X. “The Senate missed an opportunity to provide that leadership today by failing to advance the GENIUS Act.”
Secretary Bessent went on to describe the bill as representing a “once-in-a-generation opportunity” to expand dollar dominance and boost U.S. influence in financial innovation. He argued that without such legislation, stablecoins will remain governed by a fragmented set of state rules rather than a unified federal approach that better supports growth and global competitiveness.
“The world is watching while American lawmakers twiddle their thumbs,” Bessent said. “Senators who voted to stonewall U.S. ingenuity today face a simple choice: Either step up and lead or watch digital asset innovation move offshore.”
A not-so-brilliant delay for the GENIUS Act
The Senate Banking Committee earlier voted to advance the GENIUS Act in March. The bill requires stablecoins to have 100% reserve backing with U.S. dollars and similarly liquid assets, annual audits, and prohibits foreign issuance in the country.
The Senate voted 49-48 against the bill in its current form on Thursday, with Sens. Josh Hawley, R-Mo., and Rand Paul, R-Ky., joining Democrats in opposing the procedural vote.
While the GENIUS Act bill resulted from bipartisan negotiations, Democrats recently raised concerns about unfinished bill text, foreign issuer oversight, and anti-money laundering provisions. Senator Mark Warner, D-Va., said he couldn’t support legislation that wasn’t yet finalized, and Senate Majority Leader John Thune, R-S.D., despite also voting no, said he did so to allow the bill to be reconsidered later, criticizing the Democrats amid the multiple versions made in an attempt to address their concerns. “I just have to say, frankly, I just don’t get it,” Thune said. “I don’t know what more they want.”
Tensions deepened as Trump’s personal and financial ties to crypto — including memecoin launches, $1.5 million-per-plate crypto fundraisers, and backing DeFi project World Liberty Financial (which has its own stablecoin) — sparked accusations of conflict of interest ahead of the vote.
Some Democrats, including Rep. Maxine Waters, D-Calif., also boycotted a crypto-focused House hearing this week amid the political jockeying, citing the president’s direct crypto holdings and influence over agencies. The House Financial Services Committee also recently voted to advance a similar bill, the STABLE Act, with anti-money laundering and reserve requirements.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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