The stablecoin bill "GENIUS Act" failed to pass! Democrats worry that Trump will benefit, Coinbase CEO: Keep pushing forward.

The cryptocurrency bill "GENIUS Act," originally seen as a breakthrough in the regulation of US stablecoins, was blocked in the Senate with a vote of 48 to 49, with some Republican senators also casting opposing votes. The main reason was that the Democrats questioned Trump’s involvement in the issuance of the "$TRUMP" meme coin, raising concerns about conflicts of interest. However, Coinbase CEO Brian Armstrong stated that seeing the bill reach a vote is a good thing, representing a historic first step in the regulatory process.

What is the GENIUS Act? The first step in stablecoin regulation.

The original intent of this bill is to establish the first regulatory rules in the United States for the issuance of stablecoin issuers (such as USDC, USDT) (, making the crypto market more compliant and transparent.

This bill was originally passed by the Senate Banking Committee and had the support of 5 Democratic senators, seemingly making it likely to pass. However, just at the crucial moment when a formal vote was being prepared, there was a significant turnaround within the Democratic Party.

The Democratic Party's collective shift, concerned that Trump is using policies for personal gain.

Inside the Democratic Party, Senate Minority Leader Chuck Schumer and Senator Elizabeth Warren privately pressured and urged party members to suspend their support. They argued for the inclusion of stricter anti-corruption provisions, including a ban on Trump and his family owning or trading encryption.

One of the key turning points is that an investment company with a background in Abu Dhabi announced it would invest billions of dollars into the Trump family's encryption project "World Liberty Financial," raising strong concerns from Democratic lawmakers about the potential issues of "exchanging policy for financial aid" and "collusion between officials and businesses."

Negotiations have broken down, and multiple key provisions have not been included.

The Democratic Party requests that the following clause be added:

Prohibit the president and his family from issuing stablecoins

Stricter anti-money laundering provisions

Prohibit foreign forces from interfering with the issuance of encryption assets.

Expand the constraints on meme coins and political figures' encryption activities.

Among them, the provision originally hoping to prohibit officials from issuing stablecoins was removed in the final negotiations, which dissatisfied the Democrats. Arizona Republican Senator Gallego attempted to delay the vote and negotiate for more time, but was rejected by Warren.

There are also mixed signals within the Republican Party.

Despite the Republican Party holding a 53-seat advantage, several senators still cast votes against it:

Josh Hawley: Hope the bill can prohibit tech companies ( Google, Meta ) issuance of stablecoins.

Rand Paul: Opposes overall regulation, believes if the market is fine, don't mess it up.

Senate Republican leader Thune also cast a no vote. He actually supports the legislation, but strategically voted no this time to make it easier for him to bring the bill back to the agenda in the future. This is a technical maneuver in the Senate (.

Coinbase CEO: It's a good thing that the bill has entered the voting stage, keep up the effort.

Coinbase, a well-known exchange, CEO Brian Armstrong also tweeted after the vote on Twitter )X( saying:

"Although this failure occurred, it is a good thing to see the Senate finally vote on the stablecoin bill. This is just the beginning, and this is part of the process."

Coinbase's position represents the expectations of the encryption industry regarding compliance legislation, but also reveals the industry's dissatisfaction with clauses in the legislation such as "prohibition of profits."

Out-of-market pressure and concerns

On the eve of the vote, AI encryption czar David Sacks was invited by the Republicans to participate in a closed-door briefing to discuss cryptocurrency regulation and venture capital perspectives. However, many senators also admitted that even they themselves are unclear about how the crypto world operates:

"There is currently no regulation, it's just like the Wild West." Ohio Republican Senator Husted

"Bitcoin trading is completely different from stablecoin, and everyone really needs to understand what the difference is." Florida Senator Sen. Rick Scott

The bill has not yet succeeded, and progress still requires effort.

The recent failure of the vote on the "GENIUS Act" is not just a simple legislative stalemate, but it also reveals the political prelude to the regulatory battle over cryptocurrency. Trump has previously endorsed his own meme coin TRUMP and announced with an investment firm connected to Abu Dhabi plans to invest billions of dollars in the Trump family's cryptocurrency project WLF, raising concerns among Democrats about collusion between politics and business and increasing worries about potential benefits to certain parties.

As the cryptocurrency market matures and influences political and electoral interests, the battles over legislation, ethical standards, and presidential financial disclosures will only intensify in the future.

The stablecoin bill "GENIUS Act" failed to pass! The Democratic Party is worried that Trump is benefiting, Coinbase CEO: continue to work hard. First appeared in Chain News ABMedia.