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Efforts to create a nationwide regulatory framework for stablecoins have stalled in the U.S. Senate. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act failed to clear a cloture vote, falling short of the 60 votes needed to move forward.
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Introduced by Senator Bill Hagerty (R-TN) in February, the GENIUS Act aimed to establish clear rules for stablecoin issuers. It would have required reserves to be fully backed by U.S. currency, insured deposits, or U.S. Treasury instruments such as bills, notes, or bonds.
The bill initially saw some bipartisan support during committee reviews. However, over the weekend, a group of Democrats stepped back from full endorsement, citing unresolved concerns. These included the need for tighter anti-money laundering safeguards, oversight of foreign issuers, and measures to protect the financial system’s integrity.
According to the group, “The bill as it currently stands still has numerous issues that must be addressed, including adding stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability for those who don’t meet the act’s requirements.”
One of the more crypto-friendly voices, Senator Ruben Gallego (D-AZ), confirmed that discussions had taken place earlier in the week to try and reach an agreement. But he explained that the request for more time to refine the bill was rejected.
“I went to the floor and asked for more time to negotiate, without delaying the bill’s timeline for final passage. Republicans refused. Without more time to at least finish the bill text, there was no true bipartisan path forward,” Gallego said.
He added, “I will always be willing to continue to work on bipartisan stablecoin legislation. America must lead in this space and consumers deserve to be protected.”
On Thursday, the Senate took the bill to a cloture vote, which failed 48–49. Cloture votes are used to end debate and require at least 60 votes to move forward, making bipartisan cooperation essential. Without that support, the GENIUS Act now sits on hold, with no immediate path to revival.