This week, the US Senate did not progress with a significant bill on regulating stablecoins called the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act). On May 8, Democratic lawmakers came together to stop the bill, with 49 of them voting against moving the legislation forward, while 48 Republican senators supported it. The bipartisan support for the bill fractured as key Democrats, previously in favor of the GENIUS Act, such as Ruben Gallego, Mark Warner, Lisa Blunt Rochester, Andy Kim, Kirsten Gillibrand, and Angela Alsobrooks, voted against it. These Democrats explained that the proposal lacked important safeguards, including stronger measures on anti-money laundering, enhanced oversight of foreign stablecoin issuers, and better enforcement tools for ensuring compliance. Concerns regarding national security and the stability of the broader financial system were also cited as unresolved issues by these lawmakers. While some Republicans criticized the Democratic decision, arguing it put political interests before progress, others highlighted missed opportunities for enacting reforms that could boost innovation and solidify the US’s position in financial technology. Following the unsuccessful vote, an updated version of the GENIUS Act has been released, with changes such as a narrowed list of sponsoring senators, expanded US jurisdiction covering foreign stablecoin issuers serving American users, and refined definitions relating to digital asset service providers and assets backing stablecoins. Tether CEO Paolo Ardoino responded positively to these revisions, expressing support for constructive regulation to enhance the dominance of the US dollar in global markets.