The US Senate yesterday rejected the Genius Act bill intended to regulate stablecoins. With a vote of 48 against 49, far from the 60 votes required, this Bipartisan legislation came up against an unexpected opposition from the Democrats, compromising the regulatory future of cryptos backed by the dollar. But what are the real reasons behind this legislative failure?
In short
- The Genius Act bill failed with a 48 vote against 49, far from the 60 votes required.
- Democrats have withdrawn their support, citing concerns about Trump's ties with the crypto sector.
- The head of the majority in the Senate, John Thune, changed his vote to allow a subsequent review.
- Republicans accuse Democrats of jeopardizing the future of American crypto industry.
Why did the Democrats blocked the text on the Stablecoins?
The US Stablecoins Bill was suffering from a bitter failure in the Senate this Thursday, May 8. The Genius Act legislation failed to overcome the essential procedural obstacle which would have allowed its debate in plenary session, stopped net by a democratic resistance that little had anticipated.
With 48 votes for and 49 against, the ballot ended well below the 60 votes required to advance the text. Notable, two Republicans, Josh Hawley and Rand Paul, joined the opposition, more weakening this legislative initiative.
The turnaround of several Democrats, however favorable at the origin, surprised the observers. These senators now denounce the absence of robust guarantees against fraudulent activities that stablecoins could facilitate.
Their main concern? The business relations that President Trump maintains with the crypto industry, perceived as a worrying conflict of interest.
Even Senator Ruben Gallego, however beneficiary of $ 10 million in support for crypto lobbies during his 2024 electoral campaign, defended this change of course:
Legislation of such importance cannot be precipitated. We need time to examine it properly.
He recommends a minimum postponement until next Monday, in order to allow a more rigorous evaluation of the text.
Republicans denounce an unjustified blockage
The Republican senator Bill Hagerty, the main craftsman of the bill, did not chew his words in the face of this reverse.
For him, the elected officials who blocked the opening of the debate actually voted for ” Kill the crypto industry in America ». An accusation that highlights the extent of political differences on this sensitive issue.
John Thune, head of majority in the Senate, defended the inclusive nature of the legislative process: ” It is a Bipartisan bill, drawn up in a spirit of collaboration from the start. »»
He insisted that the current text already represented the sixth version, after multiple revisions to integrate democratic concerns. “Jhe really does not understand their current position “, He added.
Beyond the partisan considerations, the Genius Act pursued a major strategic objective: to strengthen the domination of the US dollar on the international scene thanks to the stablecoins. The Trump administration sees it as a crucial geopolitical lever to maintain the hegemony of the greenback in the world digital economy.
The question remains: can a revised version of the text quickly emerge from negotiations? The calendar set by President Trump is ambitious, with a desired signature before the August parliamentary break. The future of crypto regulation in the United States, and potentially the influence of the dollar in the world digital economy, now depend on these next negotiations.
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