The U.S. Senate voted Thursday against advancing the GENIUS Act, a key bill that would regulate stablecoins, marking a setback for the crypto industry’s push for regulatory clarity. 

The procedural cloture vote failed 48-49, falling short of the 60 votes needed to begin formal debate.

Despite months of bipartisan negotiations and a previous win in the Senate Banking Committee, late opposition from Senate Democrats derailed momentum. 

Lawmakers cited concerns over insufficient safeguards against illicit finance and foreign stablecoin issuers, while several Democrats pointed to President Donald Trump’s crypto affiliations — including his memecoin and fundraising dinners — as complicating the process.

Senators Josh Hawley and Rand Paul broke from their party to vote against advancing the legislation. Senate Majority Leader John Thune flipped his vote at the last minute, a procedural tactic to allow for reconsideration.

Sen. Ruben Gallego, who previously supported the bill and received $10 million from pro-crypto PACs in 2024, urged a pause to revise the legislation. 

The legislation is not dead — yet 

Despite the impasse, some lawmakers remain optimistic. Sen. Mark Warner noted the bill “isn’t yet finished” and still requires key protections for Americans. Meanwhile, Republicans like Sen. Cynthia Lummis warned that delaying progress could stifle U.S. crypto innovation.

Sen. Bill Hagerty, the bill’s sponsor, has said the vote amounted to “killing the crypto industry here in America.”

The debate may resume next week, pending further negotiation.