Bessent Slams Senate Over GENIUS Act Collapse Amid Trump-Crypto Controversy
U.S. Treasury Secretary Scott Bessent delivered a scathing critique of the Senate’s narrow decision to halt progress on the GENIUS Act, a key stablecoin regulation bill, as political friction over former President Donald Trump’s crypto entanglements continues to escalate.
In a pointed statement on X, Bessent accused lawmakers of forfeiting global leadership in the digital asset space. “For stablecoins and other digital assets to thrive globally, the world needs American leadership,” he posted. “The Senate missed an opportunity to provide that leadership today.”
Bessent described the GENIUS Act as a "once-in-a-generation opportunity" to reinforce U.S. dollar dominance in the evolving digital finance world. He warned that the failure to enact clear federal rules risks leaving the stablecoin market fragmented and vulnerable to regulatory uncertainty, both at home and abroad.
"The world is watching while American lawmakers twiddle their thumbs," Bessent added. "Senators who voted to stonewall U.S. ingenuity today face a simple choice: Either step up and lead or watch digital asset innovation move offshore."
Fractured Vote and Political Undercurrents
The bill, which cleared the Senate Banking Committee in March, aimed to establish firm rules for U.S.-issued stablecoins — including full reserve backing with dollars and liquid assets, annual third-party audits, and a ban on issuance by foreign entities. However, it was narrowly blocked in a 49–48 vote Thursday, with Republican Senators Josh Hawley (Mo.) and Rand Paul (Ky.) aligning with Democrats to oppose the motion.
Although the GENIUS Act was the product of bipartisan collaboration, internal divisions emerged in recent weeks. Democrats voiced concerns over unfinished bill text, insufficient oversight for foreign-backed coins, and weak anti-money laundering protections. Senator Mark Warner (D-Va.) withheld support over unresolved gaps, while Senate Majority Leader John Thune (R-S.D.) — who also voted “no” — suggested the rejection was procedural, allowing for revisions and a potential revival later.
"I just don’t get it," Thune remarked. "I don't know what more they want."
Trump’s Crypto Involvement Fuels Distrust
The vote took place against a politically charged backdrop. Donald Trump’s deepening involvement in the crypto world — including a reported $1.5 million-per-plate fundraiser tied to a memecoin launch and his endorsement of the DeFi platform World Liberty Financial — has raised eyebrows. That platform is linked to its own stablecoin project, sparking concerns over conflicts of interest.
The optics worsened when some House Democrats, including Rep. Maxine Waters (D-Calif.), boycotted a crypto policy hearing, citing what they claim is presidential influence over regulatory bodies and market participants.
Meanwhile, the House Financial Services Committee recently advanced the STABLE Act — another stablecoin bill with stronger anti-money laundering requirements — suggesting the legislative fight over digital currency regulation is far from over.