Senate Democrats just slammed the brakes on America’s crypto future. The GENIUS Act, a bill to regulate payment stablecoins, crashed and burned in a 48-49 Senate vote on May 8, 2025, falling short of the 60 votes needed to move forward. Innovation isn’t a priority when political points are at stake.
The bill, designed to create a framework for stablecoins, was torpedoed by Democrats, citing weak anti-money laundering and national security provisions. This failure marks a blow to the crypto industry, which has been riding high under President Trump’s pro-innovation agenda.
The Hill reported that back in March 2025, the GENIUS Act sailed through the Senate Banking Committee with bipartisan support, including five Democrats.
But over the weekend before the vote, several Democrats flipped, leaving Republicans stunned. So much for “bipartisan progress.”
Negotiations had been ongoing for days, but Democrats claimed they hadn’t seen new bill text by Thursday morning. Sen. Ruben Gallego, D-Ariz..., begged for a delay until May 12, whining, “We need time.” His request was shot down, and the vote proceeded.
“We’ve made great progress,” Gallego said on the Senate floor, praising bipartisan efforts. Progress? Sounds like a convenient excuse for stalling a bill that could boost American innovation.
Democrats accused Republicans of rushing the vote and cutting off talks early. Yet Senate Republicans, led by Majority Leader John Thune, R-S.D., insisted they’d spent months incorporating Democratic feedback. Who’s playing games here?
Thune, frustrated, switched his vote to “no” in a procedural move to allow reconsideration. “I just don’t get it,” he said, questioning if Democrats were just obstructing to deny Trump a win. When the goalposts keep moving, it’s hard to argue he’s wrong.
“If Democrats were interested in further changes, they could’ve made them on the floor,” Thune added. Instead, they chose to tank the bill, leaving crypto innovators in the lurch. Actions have consequences.
The House companion bill, the STABLE Act, had already cleared the House Financial Services Committee in April 2025. With the Senate’s failure, the crypto industry’s momentum under Trump’s leadership takes a hit. Why let progress stall over political posturing?
Democrats’ objections centered on anti-money laundering and national security gaps in the bill. Fair enough, but their sudden about-face after months of talks smells like politics, not principle. Meanwhile, the world watches as America fumbles its crypto lead.
Sen. Elizabeth Warren, D-Mass.., took to X, screeching, “Trump is already using his stablecoin” for a $2 billion deal with an Emirati firm and Binance. Her outrage over Trump’s World Liberty Financial venture reeks of selective indignation. Where was this energy for other industries?
The Trump family’s crypto deal, announced the week prior, has Democrats clutching their pearls over foreign influence. Yet their walkout from a House hearing on digital asset legislation on May 6 shows they’re more interested in theatrics than solutions.
Treasury Secretary Scott Bessent didn’t mince words, stating on X, “The world is watching while American lawmakers twiddle their thumbs.” He’s right—senators blocking this bill risk driving crypto innovation overseas. That’s not leadership; it’s surrender.
“We want to bring this economy to the United States,” Gallego claimed, insisting Democrats support crypto progress. If that’s true, why block a bill that could keep America competitive? Talk is cheap.