This week, the US Senate failed to move forward on a major stablecoin regulation bill called the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act).

On May 8, Democrat lawmakers united to block the bill, as 49 of them voted against advancing the legislation, while 48 Republican senators supported it.

Bipartisan Support Fractures as Key Democrats Reject Stablecoin Legislation

Notably, several Democrats who had previously backed or co-sponsored the GENIUS Act—including Ruben Gallego, Mark Warner, Lisa Blunt Rochester, Andy Kim, Kirsten Gillibrand, and Angela Alsobrooks —voted against it.

This marks a surprise, considering the bill had previously garnered bipartisan legislative support.

Gallego and several colleagues defended their move in a joint statement, saying the proposal lacked critical safeguards.

According to them, the bill needed to include stronger language on anti-money laundering, more robust oversight of foreign stablecoin issuers, and clearer enforcement tools to ensure compliance.

They also cited national security concerns and the stability of the broader financial system among their unresolved issues.