Story perspectives

Senate Rejects GENIUS Act, Sparks Crypto Regulatory Debate

5/14/2025

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Summary

Story summary

The GENIUS Act, intended to regulate stablecoins, did not pass in the Senate amid concerns over Trump's crypto activities.
Bipartisan support is essential for future legislation, with Democrats wary of consumer protection implications.
Treasury Secretary Scott Bessent calls for a regulatory framework to enhance U.S. leadership in digital assets.
Senators Lummis and Moreno advocate for excluding unrealized gains on digital assets from corporate tax calculations to avoid penalties.

History

Historical Context

The failure of the GENIUS Act to regulate stablecoins reflects ongoing tensions in U.S. cryptocurrency policy, echoing past legislative challenges. Similar to the 2018 Sovereign Currency Act in the Marshall Islands, which aimed to establish a national cryptocurrency, U.S. lawmakers struggle to balance innovation with consumer protection. The bipartisan push for clarity in digital asset regulation remains crucial as global frameworks evolve, notably the EU's Markets in Crypto-Assets regulation.

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Story summary

The GENIUS Act, intended to regulate stablecoins, did not pass in the Senate amid concerns over Trump's crypto activities.
Bipartisan support is essential for future legislation, with Democrats wary of consumer protection implications.
Treasury Secretary Scott Bessent calls for a regulatory framework to enhance U.S. leadership in digital assets.
Senators Lummis and Moreno advocate for excluding unrealized gains on digital assets from corporate tax calculations to avoid penalties.

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