The U.S. Senate has blocked the GENIUS Act, a bill that aimed to set rules for the fast-growing cryptocurrency market. On May 8, the legislation failed to pass in a 48-49 vote. While the bill had support from both parties at first, rising concerns about Donald Trump’s crypto involvement shifted the tide.
Two Republican senators, Rand Paul of Kentucky and Josh Hawley of Missouri, broke with their party. Paul said the bill could lead to too much government control. Hawley, on the other hand, argued the bill did not do enough to limit the power of big tech firms.
Senator John Thune, a Republican leader, also voted against the bill. However, his “no” vote was a strategic move. It allows the bill to be reintroduced later for another vote.
Democrats Pull Back After New Warnings
Just days before the vote, nine Senate Democrats who had once backed the bill changed their minds. They raised alarm over a lack of strong safeguards. Their main concerns were money laundering risks and national security threats.
With 60 votes needed to overcome a filibuster, the shift in support led to the bill’s downfall.
Senate Majority Leader Chuck Schumer voiced his frustration. “There wasn’t even a final version of the bill available. How do you vote for a bill if you haven’t seen the text?” he asked.
Trump’s Crypto Connections Spark Outrage
The vote came after reports linked former President Trump to major crypto deals. These raised questions about ethics and foreign influence.
Trump-backed crypto firms have reportedly earned over $300 million this year alone. These earnings come from fees linked to meme coins and other digital tokens.
One of these firms promoted a new coin called $TRUMP. As a reward for spreading the word, some supporters were promised a private dinner with Trump. After the news broke, the coin’s value jumped by 80%.
In another deal, a firm called World Liberty Financial revealed big news. One of its crypto tokens is involved in a $2 billion investment deal between the UAE’s Abu Dhabi and Binance, one of the world’s largest crypto exchanges. World Liberty Financial has strong ties to the Trump family.
Lawmakers Demand Transparency and Oversight
Senator Richard Blumenthal of Connecticut spoke out during the debate. He called the situation “a dangerous mix of business and politics.”
Blumenthal accused Trump of turning his time in the White House into a “crypto marketplace.” He also raised concerns about foreign governments possibly using these investments to gain influence.
The White House responded by saying Trump has placed his assets in a trust controlled by his children. They said this removes any direct conflict of interest.
Still, lawmakers from both sides are uneasy. Many now say stronger rules and clear oversight must come before any new crypto laws can pass.
The GENIUS Act: What It Tried to Do
The GENIUS Act stood for “Guardrails and Ethics in the New Infrastructure of the United States.” It aimed to regulate digital currencies, protect consumers, and create a legal path for businesses.
The bill also included steps to stop illegal crypto use. These included tracking suspicious transactions and requiring digital wallets to follow banking rules.
Supporters believed the bill could prevent major crimes. These include drug trafficking, terror financing, and fraud, which are often linked to crypto.
But critics said the bill moved too fast and didn’t cover enough. Some felt it gave too much power to large firms or failed to protect small investors. Others feared it could slow innovation in the tech sector.
Crypto’s Growing Role in U.S. Politics
Cryptocurrency is no longer just a tech issue. It is now a hot topic in U.S. politics. With billions of dollars in digital assets and large donations from crypto firms, many lawmakers worry about influence and corruption.
Trump’s involvement has made this concern even bigger. Reports suggest that crypto firms with ties to Trump are gaining ground.
Public trust is now a key issue. Lawmakers say voters need to know who is funding what—and why.
What’s Next for Crypto Laws?
With the GENIUS Act stalled, it’s unclear when Congress will try again. Some senators hope to revise the bill to add more safeguards. Others want a new plan entirely.
Senator Elizabeth Warren has proposed stricter laws to prevent crypto abuse. She wants more checks on who can create coins and how they are traded.
Meanwhile, Senator Cynthia Lummis of Wyoming, a strong crypto supporter, is calling for balanced laws. She says the U.S. must lead in crypto innovation but also protect people.
The debate is far from over. As digital money becomes more common, lawmakers will face pressure to act.