May 8 (UPI) — By a one-vote margin, the Senate stymied a first-of-its kind measure designed to regulate cryptocurrency in the United States, with Republicans crossing party lines to derail the bill.
The measure, nicknamed the GENIUS Act, would have created a “stablecoin,” and tied the value of it to the U.S. dollar.
Republican Sens. Josh Hawley and Rand Paul voted with Democrats to defeat the bill, 49-48. Both parties had been negotiating for months to reach a compromise.
There has been rare bipartisan support for the GENIUS Act, but nine Democrats over the weekend said they wanted further changes to the measure before agreeing to support it.
“The bill as it currently stands still has numerous issues that must be address, including adding stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability for those who don’t meet the act’s requirements,” they wrote in a joint open letter Saturday, CNN reported.
Bo Hines, executive director of President Donald Trump’s Working Group on Digital Assets, labeled Democrats obstructionist.
“Democrats decided to play partisan politics today,” Hines wrote on X. They have once again proven that they are not pro-innovation and they do not put the interests of the American people first.”
Democrats cited numerous issues with the GENIUS Act in its current form, and added that they want stronger provisions to address “anti-money laundering, foreign issuers, and national security.”
Sen. Mark Warner, D-Va., said on X that he could not ask his colleagues to vote for the measure and it will need changes to garner his support.
Until last week, the GENIUS Act enjoyed bipartisan support and both sides continued to negotiate right up to the floor debate. Trump has waded into the cryptocurrency issue while trying to increase the United States’ presence in the digital asset arena.
Sen. John Thune, R-S.D., said the bill’s defeat Thursday presages a difficult future for similar crypto bills.
