Legislation to create a framework for payment stablecoins failed to clear a key hurdle on the Senate floor Thursday, after several Democrats voted against moving forward with consideration of the bill.
Senators voted 48-49 to end debate on a motion to proceed on the GENIUS Act, short of the 60 votes required to move the measure further along the road to final passage.
Senate Majority Leader John Thune (R-S.D.) switched his vote from yes to no in a procedural move that allows him to bring the measure up again.
Senate Democrats who previously supported the GENIUS Act withdrew support for the bill over the weekend, after Republican leadership sought to fast-track a vote on the legislation.
The senators accused Republicans of cutting off negotiations early, arguing that the latest version of the bill lacked strong enough provisions on anti-money laundering, national security and other issues.
The two sides have been engaged in negotiations for several days, with some reports of a deal. However, Senate Democrats said Thursday morning that they had still not seen new bill text.
Sen. Ruben Gallego (D-Ariz.), the top Democrat on the Senate Banking subcommittee on digital assets, asked for unanimous consent to delay the vote until Monday to give lawmakers more time.
“We’ve made some great progress over this past week,” Gallego said on the Senate floor ahead of Thursday’s vote. “I greatly, greatly appreciate the work that we’ve done in a bipartisan manner.”
“The reason you’re hearing some hesitancy, the legislation of this scope and importance really just cannot be rushed, and we need time both to educate our colleagues and people,” he added. “We’re not shutting down. We don’t want to shut this down to the point where we’re ending all this work that we have put into it.”
“We want to bring this economy and this innovation to the United States, and I’m asking for that time,” he continued. “I want to be clear that you do have enough members across the aisle that want to see this pass in a good manner.”
His request was ultimately rejected, and the Senate proceeded with the vote.
Senate Republicans have expressed frustration with their colleagues across the aisle, arguing that they have worked on the legislation for months and incorporated their feedback.
Thune slammed Democrats for blocking the legislation, emphasizing they would have had an opportunity to consider more tweaks on the floor before a final vote.
“If Democrats were interested in further changes as they claim, they would have had the chance to make those changes on the floor,” Thune said. “All they had to do was vote for cloture. Not every bill that comes to the floor is a final bill. Now, that might be how it worked when they were in control, but Republicans are doing it differently.”
Thune suggested Democrats may be attempting to block Republicans and President Trump from securing a bipartisan win.
“I just have to say frankly I just don’t get it. I don’t know what more they want,” he said. “Which of course makes you wonder if this is about the bill at all. Or if it’s simply Democrats obstructing because they want to deny Republicans or President Trump a bipartisan win. Now given the fact that Democrats keep moving the goal posts, it’s hard not to suspect that is the case.”
Treasury Department Secretary Scott Bessent also ripped Democrats, saying the Senate “missed an opportunity to expand dollar dominance and U.S. influence in financial innovation.”
“The world is watching while American lawmakers twiddle their thumbs. Senators who voted to stonewall U.S. ingenuity today face a simple choice: Either step up and lead or watch digital asset innovation move offshore,” Bessent said in a statement posted to the social platform X.
The failed vote marks a loss for the crypto industry, which has gained new momentum under the Trump administration and Republican leadership in Congress.
Stablecoin legislation — one of two key priorities for the president and GOP lawmakers alongside digital asset market structure legislation — had been sailing forward until last week.
The GENIUS Act passed out of the Senate Banking Committee with support from five Democrats in March, while its companion in the House, the STABLE Act, passed out of the House Financial Services Committee last month.
Crypto legislation now faces a more difficult road ahead, especially as Trump and his family continue to expand their crypto portfolio.
World Liberty Financial, the crypto venture launched by the president and his sons, announced last week that its new stablecoin would be used to complete a $2 billion transaction between Emirati firm MGX and crypto exchange Binance.
The deal has drawn heavy scrutiny from Democrats, who argue that Trump is attempting to profit from the crypto industry and potentially exposing the U.S. government to foreign influence.
Opponents of the GENIUS Act, such as Sen. Elizabeth Warren (D-Mass.), pointed to the deal to underscore their concerns with the legislation.
“Trump is already using his stablecoin to get a cut of a $2 BILLION deal with a shady UAE fund,” Warren wrote on X on Tuesday. “The Senate will vote on the GENIUS Act, a crypto bill which would make the President’s grift even easier. If we don’t fix that problem, no Senator should vote for it.”
It has also provoked pushback from Democrats in the House, who walked out of a hearing on market structure legislation Tuesday.
Updated at 3:40 p.m. EDT.
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