Senate Rejects Crypto Bill: Did Trump’s $2B Deal Kill the GENIUS Act?
Senate blocks GENIUS Act over Trump’s $2B crypto deal and weak safeguards. Is crypto’s big moment slipping away? Uncover the drama!
The U.S. Senate rejected the GENIUS Act, a landmark bill to regulate stablecoins, on May 8, 2025, falling one vote short of the 60 needed to advance. The bill, initially bipartisan, aimed to create a federal framework for stablecoins—cryptocurrencies tied to assets like the U.S. dollar. However, Democratic pushback, fueled by concerns over President Trump’s $2 billion crypto deal with UAE-backed MGX, derailed its progress.
What’s Happening?
The GENIUS Act promised regulatory clarity for stablecoins, a $200 billion market, to foster innovation and protect consumers. Nine pro-crypto Democrats, including Senator Ruben Gallego, withdrew support, citing weak anti-money laundering rules and fears that Trump’s family could profit from the legislation. A 49-48 vote, with GOP defections from Senators Rand Paul and Josh Hawley, sealed its fate. Senate Minority Leader Chuck Schumer urged Democrats to demand stronger safeguards, while Elizabeth Warren called the bill a “grift” for Trump’s crypto ventures.
The GENIUS Act promised regulatory clarity for stablecoins, a $200 billion market, to foster innovation and protect consumers. Nine pro-crypto Democrats, including Senator Ruben Gallego, withdrew support, citing weak anti-money laundering rules and fears that Trump’s family could profit from the legislation. A 49-48 vote, with GOP defections from Senators Rand Paul and Josh Hawley, sealed its fate. Senate Minority Leader Chuck Schumer urged Democrats to demand stronger safeguards, while Elizabeth Warren called the bill a “grift” for Trump’s crypto ventures.
Why It Matters
Stablecoins power crypto transactions, and clear rules could boost U.S. competitiveness against regions like the EU, which has the MiCA framework. The bill’s failure leaves the industry in limbo, facing SEC lawsuits and uncertainty. Trump’s deal, including a stablecoin tied to MGX’s Binance investment, raised red flags about conflicts of interest, souring bipartisan trust. This setback could slow crypto adoption, but some argue it protects against unchecked corruption.
Stablecoins power crypto transactions, and clear rules could boost U.S. competitiveness against regions like the EU, which has the MiCA framework. The bill’s failure leaves the industry in limbo, facing SEC lawsuits and uncertainty. Trump’s deal, including a stablecoin tied to MGX’s Binance investment, raised red flags about conflicts of interest, souring bipartisan trust. This setback could slow crypto adoption, but some argue it protects against unchecked corruption.
What’s Next?
Negotiations may resume, with Senate Majority Leader John Thune open to changes. Without a deal, crypto legislation risks becoming a partisan issue, delaying progress until 2026. The industry, backed by PACs like Fairshake, will likely push harder, but Democrats’ focus on ethics could reshape future bills.
Negotiations may resume, with Senate Majority Leader John Thune open to changes. Without a deal, crypto legislation risks becoming a partisan issue, delaying progress until 2026. The industry, backed by PACs like Fairshake, will likely push harder, but Democrats’ focus on ethics could reshape future bills.
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NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
