In a 49–48 vote, the Senate failed to pass a procedural motion to invoke cloture on the "Guiding and Establishing National Innovation for U.S. Stablecoins Act."
Senate Banking Committee Chair Tim Scott denounced Senate Democrats for voting down a procedural step to advance the GENIUS Act, calling it "a disappointing display of political gamesmanship." Senator Scott accused Democrats of putting "partisan politics above policy, and obstruction above innovation."
Republican Senators Josh Hawley and Rand Paul also voted against cloture.
Voting no, Senator Elizabeth Warren argued "there are five areas that need revision:
- First, a bill must include basic rules so government officials can’t use stablecoin ventures to line their own pockets and so that foreign governments and giant corporations cannot use stablecoins to pay bribes to the President of the United States.
- Second, the bill must prevent Big Tech and other commercial firms from issuing stablecoins, preserving America's historical separation between banking and commerce.
- Third, the bill must include basic consumer protections—the same as for any other financial transaction.
- Fourth, the bill must safeguard national security, providing the same guardrails as other payment systems to make sure we're not turbocharging the financing of drug traffickers, terrorists, adversaries like North Korea, and scammers.
- And, fifth, the bill must have sufficient safeguards so that a stablecoin meltdown won’t trigger an economy-wide financial meltdown."
Senator Warren also asserted that the bill "would supercharge Donald Trump's corruption," stating "it has been shocking to see Donald Trump move at breakneck speed to use his position as President to reap billions of dollars for himself personally and for his family." She called it "the biggest corruption scandal in modern history."
She indicated that she was willing to support some version of the GENIUS Act, albeit with a variety of substantial amendments.
