Jerry Jackson The GENIUS Act, once seen as a rare bipartisan effort to provide clarity for digital asset markets, failed to advance in a 48–49 vote. The outcome blocks immediate progress on federal crypto regulation and reveals deep divisions over ethics and transparency in policymaking.
Lawmakers Divided Over Ethics and Innovation
Two Republicans, Senators Rand Paul and Josh Hawley, joined Democrats in voting against the bill. Paul said the legislation could hurt innovation in the blockchain industry, while Hawley demanded tougher rules for big tech companies tied to crypto operations.
Senate Minority Leader John Thune also voted “no,” signaling the bill could return for future consideration in a revised form. “This is not a rejection of regulation,” he stated, “but a call to get it right.”
Democrats Withdraw Support Over Transparency Issues
Just days before the vote, nine Democratic senators pulled their support. They said the bill lacked strong protections against financial crimes, fraud, and foreign influence.
Senate Majority Leader Chuck Schumer sharply criticized the process, citing the absence of updated bill text. “You can’t vote on a bill you haven’t read,” he said. “Our duty is to protect the public, not push through vague promises and loopholes.”
Without the required 60 votes to overcome a filibuster, the bill’s path forward is now blocked—at least for now.
Trump’s Crypto Ties Spark Ethical Concerns
The bill’s downfall comes amid new revelations about former President Donald Trump’s deepening ties to the crypto market. His affiliated companies have reportedly earned over $300 million this year from meme coins and digital tokens.
One such firm offered a private dinner with Trump at his Virginia golf club to boost interest in the $TRUMP coin. That coin’s value rose 80% after the dinner was announced, raising questions about market manipulation and insider benefit.
Another company, World Liberty Financial, also connected to Trump, claimed involvement in a $2 billion deal with Abu Dhabi’s state-backed investment arm and crypto giant Binance.
Lawmakers Warn of Foreign and Political Influence
Several lawmakers expressed worry that Trump’s dual roles—as a political leader and crypto entrepreneur—may create serious conflicts of interest.
Senator Richard Blumenthal stated, “This is about protecting national interests. Trump is using public trust to profit from private tokens, and that opens the door to foreign influence.”
Democrats also raised red flags about international involvement, citing deals with non-U.S. entities that may give foreign governments leverage over domestic digital policy.
White House Denies Conflict of Interest
In response, Trump’s representatives said his crypto-related assets are held in a family trust, and denied any conflict of interest. A spokesperson added, “The President has no direct role in managing these companies. These claims are politically motivated.”
Still, lawmakers across party lines voiced the need for better safeguards. Calls grew for a new approach that emphasizes transparency, ethical compliance, and clear separation between public office and private profit.
What’s Next for U.S. Crypto Regulation?
Despite the failed vote, experts believe the crypto debate is far from over. “Congress understands the urgency of regulating digital assets,” said policy analyst Lena Rhodes. “But without trust in the process, no bill will survive.”
A revised bill is likely in the coming months, potentially with stronger ethical guidelines and clear disclosures for lawmakers involved in the industry. In the meantime, the lack of federal rules leaves crypto markets exposed to state-level patchworks and limited investor protections.
As the influence of political figures in financial markets grows, public trust remains at the center of the conversation. Lawmakers must now balance innovation with integrity.