A bill to create a national framework for digital assets suddenly fell apart despite earlier successes
A major attempt to regulate cryptocurrency in the US hit a wall this week after the Senate failed to move forward with a bipartisan bill meant to create a national framework for digital assets. The proposal, known as the GENIUS Act, was blocked yesterday during a 48-49 vote, falling short of the 60 votes needed to advance.
The bill had initially gained some cross-party support, but momentum quickly collapsed when a group of Democrats who had previously backed it withdrew their support. Their concerns focused on the bill’s lack of strong safeguards against money laundering and insufficient measures to address national security risks.
Two Republicans, Sens. Josh Hawley and Rand Paul, also voted against the measure. Hawley argued that the legislation didn’t go far enough to limit the influence of major tech companies, while Paul warned that the proposed rules might end up hurting innovation in the crypto sector.
Complicating matters further were rising tensions over President Donald Trump’s growing involvement in the cryptocurrency space. President Trump-affiliated businesses have reportedly earned hundreds of millions through trading fees tied to his branded meme coin and other digital assets. One of these ventures even promised a private dinner with Trump in exchange for promoting the $TRUMP coin, which saw a major spike in value shortly after.
Trump’s role in the industry has raised eyebrows among Democrats, who fear that his financial interests may influence US policy on digital currencies. Some lawmakers walked out of recent committee discussions, and Senate leaders are calling for more clarity and safeguards before any version of the bill can move forward.
The White House responded by saying President Trump’s assets are managed by his children and denied any conflict of interest. Still, the road to crypto regulation in the US now appears more tangled than ever.
