Bipartisan stablecoin legislation failed to overcome a 60-vote filibuster hurdle in the Senate Thursday in a stunning setback for the so-called GENIUS Act that would establish a regulatory framework for digital coins.
The failed vote on the first-of-its-kind measure came after last-minute opposition from a bloc of crypto-friendly Democrats, derailing what was the product of months of talks between the two sides.
The vote failed 48-49 and largely along party lines as negotiations continued behind the scenes. All Democrats opposed it.
Senate Majority Leader John Thune (R-SD) accused Democrats of allowing politics to stand in the way of a bipartisan legislative win after previously supporting the measure.
“I don’t know why you vote against proceeding to a bill on the floor after you voted to refer that same bill to the floor, which of course makes you wonder if this is about the bill at all or if it’s simply Democrats obstructing because they want to deny Republicans or President Trump a bipartisan win,” Thune said. “Now, given the fact that Democrats keep moving the goalposts, it’s hard not to suspect that is the case.”
Thune previously told reporters of Democratic holdouts: “At some point, they’re going to have to take yes for an answer.”
Senate Minority Leader Chuck Schumer (D-NY) suggested Democrats could not support advancing the bill until they see a final draft.
“How do you vote for a bill if you haven’t seen the text? There’s still no text yet,” Schumer said.
The legislation would create rules for stablecoins, cryptocurrencies that have a value tied to an underlying asset, such as gold or fiat currency like the U.S. dollar. Democrats want to add language addressing money laundering, foreign issuers, and risks to the U.S. financial system.
Some Democrats want guardrails to prohibit President Donald Trump and his family from profiting off their business ventures in cryptocurrencies. Separate legislation from Senate Minority Leader Chuck Schumer (D-NY) and Sen. Jeff Merkley (D-OR) would do just that and extend to members of Congress.
Sen. Cynthia Lummis (R-WY), one of the lead Republican sponsors, has acknowledged the Trump family’s investments were an impediment to negotiations.
Sen. Kirsten Gillibrand (D-NY), the lead Democratic sponsor, said she was “very hopeful” and “very optimistic” on the state of ongoing negotiations, as others criticized GOP leadership for plowing ahead with the vote.
“There is actual negotiation happening. I think that that negotiation should be allowed to happen and take the time needed to be able to do so,” Sen. Andy Kim (D-NJ) told the Washington Examiner on the eve of the vote. “I see no reason why this vote has to happen tomorrow.”
CRYPTO LEADERS RACE TO LOCK DOWN STABLECOIN BILL SUPPORT AHEAD OF SENATE VOTE
Lummis and Sen. Bill Hagerty (R-TN) are among the Republicans who’ve spent months negotiating language to shore up Democratic support only to also face some 11th-hour heartburn from their side of the aisle. Sen. Josh Hawley (R-MO) had concerns over Big Tech while libertarian Sen. Rand Paul (R-KY) was inclined to oppose from the start, both of whom sided with all Democrats against the bill.
Thune switched his vote from “yes” to “no,” a procedural tactic that will allow him to more easily reconsider the legislation at a later date.
