A landmark crypto regulation package failed to advance in the Senate on Thursday after key Democrats backed out over the weekend.
Dubbed the GENIUS Act, the bill needed 60 votes to move to the Senate floor for final passage. The final tally was 48 in favor and 49 against. Three senators did not vote.
Following the vote, Treasury Secretary Scott Bessent said, "the world is watching while American lawmakers twiddle their thumbs."
The GENIUS Act aims to create a regulatory framework for stablecoins, or digital assets that are pegged to the value of other assets, like the U.S. dollar.
Read more CNBC politics coverage
But nine key Democrats — four of whom had previously voted for the bill in committee — said over the weekend that they would not support the legislation.
Led by Sen. Ruben Gallego, D-Ariz., the Democrats said in a statement that they had "numerous issues" with the latest version of the bill. They called for stronger provisions to address "anti-money laundering, foreign issuers, and national security."
Sen. Ruben Gallego, D-Ariz., questions South Dakota Gov. Kristi Noem, President-elect Donald Trump's nominee to be Homeland Security secretary, during her Senate Homeland Security and Governmental Affairs Committee confirmation hearing in Dirksen building on Friday, January 17, 2025.
Tom Williams | Cq-roll Call, Inc. | Getty Images
The group was comprised of Sens. Mark Warner, Va., Raphael Warnock, Ga., Lisa Blunt Rochester, Del., Catherine Cortez Masto, Nev., Andy Kim, N.J., Ben Ray Luján, N.M., John Hickenlooper, Colo., and Adam Schiff, Calif.
"While we are eager to continue working with our colleagues to address these issues, we would be unable to vote for cloture should the current version of the bill come to the floor," the lawmakers said in the statement.
English (US)