Senate Obstructs Passage of GENIUS Coinlegislation Opposed by Treasury Secretary Bessent
Revamped and Reshaped
In a Nutshell:
- Treasury Secretary Scott Bessent critically remarked on the Senate's hindrance of the GENIUS Act, viewing it as a missed opportunity to establish the U.S. as the world leader in digital asset regulation.
- Despite bipartisan support earlier in the year, last-minute objections stalled the bill, causing concerns over national security, anti-money laundering provisions, and the sudden addition of new provisions.
- As the midterm elections approach, the failure of the GENIUS Act has cast doubt over the future of stablecoin oversight and digital asset legislation.
The cryptic World of Senators
Scott Bessent, U.S. Treasury Secretary, took to X after the Senate's refusal to advance the GENIUS Act on Thursday, denouncing the decision that potentiality jeopardizes the country's position in the global race for digital asset dominance.
"The world needs American leadership for stablecoins and digital assets to flourish," Sec. Bessent shared on X, "The Senate missed a golden opportunity to provide that leadership by failing to support the GENIUS Act."
INTERNATIONAL DOMINANCE ON THE LINE
The GENIUS Act, which aimed to introduce a federal regulatory framework for stablecoins, hit a roadblock when it failed to pass a procedural vote. This came after key Senate Democrats, such as Senator Mark Warner, pulled back due to worries about national security, anti-money laundering requirements, and the last-minute insertion of novel language.
THE CRYSTAL BALL - WHAT'S NEXT?
Bessent referred to the GENIUS Act as "a once-in-a-generation opportunity to expand the US dollar's dominance and influence on financial innovation." Without it, he warned that stablecoins would be regulated by a chaotic mix of state laws instead of a coherent federal framework.
Regardless, hopes remain that the bill will be revived as early as next week. A crypto policy insider disclosed this to Decrypt, but added that the outlook remains uncertain. Senator Warner likewise pointed to this timeline, expressing hope that the Senate could start floor consideration once the revised text is finalized and reviewed by colleagues.
With the GENIUS Act on hold, voices from the industry maintain that the broader push for crypto regulation remains a critical priority for legislators and industry leaders alike. Coinbase CEO Brian Armstrong shared his thoughts on Twitter, emphasizing the joint ambition to create clear guidelines for crypto and get it right, having spent years on the sidelines.
The midterm elections in 2026 will present a significant challenge to any efforts to pass comprehensive digital asset legislation, as every House seat and a third of the Senate will be up for grabs. If the global cryptocurrency market is indeed the future, America must take the reins.
"Make no mistake, digital assets are the future, and America must lead the charge," asserted Sen. Cynthia Lummis on Twitter.
Edited by Sebastian Sinclair
The Daily Pulse Newsletter
- Treasury Secretary Scott Bessent, on X, voiced his disappointment over the Senate's rejection of the GENIUS Act, stating it as a potential threat to the U.S.'s dominance in crypto regulation and digital asset leadership.
- The GENIUS Act, which University of Virginia Senator Mark Warner also supported, aimed to establish a federal regulatory framework for stablecoins but failed due to last-minute objections, allegedly concerning national security, anti-money laundering provisions, and new provisions.
- In the wake of the GENIUS Act's failure, doubts have arisen regarding the future of stablecoin oversight and comprehensive digital asset legislation given the midterm elections approaching.
- Secretary Bessent referred to the GENIUS Act as a once-in-a-generation opportunity to reinforce the US dollar's dominance and influence on financial innovation, suggesting that without it, digital assets could be regulated chaotically by state laws.
- Although there's hope that the GENIUS Act might be revived as early as next week, the outlook remains uncertain according to crypto policy insiders.
- Senator Warner, too, indicated floor consideration could start once the revised text is finalized and reviewed by colleagues, while Coinbase CEO Brian Armstrong urged for clear guidelines for digital assets after years of being on the sidelines.
- The 2026 midterm elections present a significant challenge to the passage of comprehensive digital asset legislation, as all House seats and a third of the Senate will be up for grabs.
- Senator Cynthia Lummis emphasized the importance of America leading in the realm of digital assets, stating "make no mistake, digital assets are the future."
