Stablecoin Legislation Suffers Severe Blow as GENIUS Act Fails to Pass Key Senate Vote

The Senate’s GENIUS Act failed to pass a key procedural vote on Thursday, a stunning blow to the stablecoin bill’s chance of passage that may have further negative consequences for other crypto legislation pending on Capitol Hill.Several pro-crypto Democrats voted against cloture on the bill, meaning they did not support formally ending debate on the legislation and advancing it towards a full vote. Democrats who voted against cloture today, who previously supported the GENIUS Act, include Ruben Gallego (D-AZ), Mark Warner (D-VA), Lisa Blunt Rochester (D-PA), Andy Kim (D-NJ), Kirsten Gillibrand (D-NY), and Angela Alsobrooks (D-MD). Alsobrooks and Gillibrand initially co-sponsored the bill. “While we’ve made meaningful progress on the GENIUS Act, the work is not yet complete, and I simply cannot in good conscience ask my colleagues to vote for this legislation when the text isn’t yet finished,” Sen. Warner said in a statement following the failed vote.Now, chances of passage for the GENIUS Act, which would establish a legal framework for issuing stablecoins in the United States, have slimmed significantly.Further, the setback may cause other crypto-focused bills, including a parallel stablecoin bill in the House and crypto market structure bills in both chambers, to hemorrhage precious bipartisan support and political momentum.Just a week ago, the GENIUS Act enjoyed substantial support in both parties and looked poised to sail to 60 votes. But then, several variables conspired to derail its chances.Late last week, a new version of the bill circulated without Democrats’ forewarning or full knowledge of its contents. In that same moment, President Donald Trump and his family made multiple crypto- and stablecoin-related announcements that stirred anger among Democrats over perceived conflicts of interest.These factors pushed nine Senate Democrats to issue a statement on Saturday withdrawing support for the GENIUS Act, sources familiar with the matter told Decrypt. At the time, the Democrats pinned their concerns on anti-money laundering and national security requirements in the bill’s latest draft.In response to the move, Senate Republicans doubled down, scheduling a cloture vote on the bill for today. In the last 24 hours, key crypto-focused counterparts from both parties have met nearly nonstop, attempting to hammer out some sort of agreement that would bring Democrats back into the fold.Up until the moment of the vote, it was unclear whether that deal could be made. On Thursday afternoon, Republican Senate leadership and the White House issued public warnings to wavering Democrats. Undergirding those threats: the likelihood that powerful crypto super PACs might abandon a bipartisan strategy and embrace the GOP in 2026, should the vote fail.But such tactics were clearly not effective. Now, crypto policy leaders worry today’s imploded vote could sink the rest of the industry’s legislative agenda.One crypto lobbyist told Decrypt that crypto’s recent political momentum was premised on the White House viewing legislation for the sector as an easy win. For months, Trump officials have spoken optimistically of an August Rose Garden signing ceremony for key crypto legislation. Today’s result could change that calculus, they said, and prompt the president to move on to other priorities.They have once again proven that they are not pro-innovation and they do not put the interests of the American people first.”A White House spokesperson did not immediately respond to Decrypt’s request for comment on this story.One crypto policy leader expressed hope the bill might be brought up for another vote as soon as Monday. But, they conceded, they have “no clue” how likely that sort of positive outcome might be at this point.Over the last several years, the crypto industry has invested billions of dollars, and countless hours, attempting to curry political favor in Washington. The last few months appeared to finally validate that strategy, with crypto emerging as one of Congress’ top legislative priorities in 2025. But now, that short-lived victory is once again in jeopardy.Edited by Andrew HaywardEditor’s note: This story was updated after publication to add comments from Warner and Hines.