Senator Tim Scott said on Thursday night that Democrats who voted against the GENIUS Act should expect “painful” political consequences. He made the statement after the crypto bill failed in the US Senate, where Democrats blocked it despite months of bipartisan talks.
The GENIUS Act, led by Senator Bill Hagerty, would have created the first legal framework for stablecoins in the US But two Democratic co-sponsors flipped their votes, and two Republicans—Josh Hawley and Rand Paul—also voted no.
According to Eleanor Terrett, former Fox Business journalist and founder of Crypto in America, Scott told her he hoped the crypto industry’s reaction would push lawmakers to return and pass the bill.
Scott, who chairs the Senate Banking Committee, said his party had made “major concessions” to get the bill across. Those included reducing the time for stablecoin issuers to register in the US, tightening national security rules, and softening anti-money laundering measures.
Still, Senators Kirsten Gillibrand and Angela Alsobrooks—who helped write the bill—turned their backs on it. Scott told Eleanor, “If you can get so much of what you want, and you still can’t say yes, I don’t get it.” He said he hopes both Democrats and the two Republicans who opposed it will come around after realizing how the delay hurts financial inclusion and blocks crypto innovation.
Democrats stall bill as Trump’s crypto ties dominate talks
The bill failed in a Senate where crypto had, until now, enjoyed its most favorable climate under President Donald Trump’s second term. The setback was the first major blow for the industry in the Trump era. Republican leaders needed Democratic votes to push the bill through, and they didn’t get them.
Senator Chuck Schumer, the Democratic leader, had warned his caucus a week before the vote not to commit to supporting the bill. Behind closed doors, he asked them to use their leverage to demand more changes. Lawmakers like Senator Elizabeth Warren and Chris Murphy raised concerns about passing any crypto legislation while the Trump family remained so deeply involved in the space.
Trump’s sons launched a stablecoin venture last year, and Trump himself issued a memecoin just two days before taking office again. Murphy said, “The Trump crypto coin scam is the biggest corruption in the history of the White House.” He and others demanded language in the bill that would bar any president from creating or profiting from crypto.
Not everyone agreed. Senator Ruben Gallego, who voted for an earlier version of the bill and led last-minute negotiations, said Trump’s coin had nothing to do with the actual bill.
“If we don’t pass any stablecoin legislation, he’s still going to do everything he’s going to do right now. The most important thing we can do is get a strong, strong bill.”
After the bill died, Scott stood on the Senate floor and said, “It was a vote to stop President Trump from having a victory in the digital asset space. It was a vote against common sense — that simple.” He accused Democrats of letting “Trump Derangement Syndrome” hijack what could’ve been a win for both parties and the crypto space.
Democrats said they needed more time to finalize the deal. Gallego asked to delay the vote on the Senate floor, but Republicans rejected the request. Now, Senate Majority Leader John Thune has filed a motion to reconsider, which could bring the bill back.
Senator Warren told reporters, “I always worry about the influence of money in Washington, but the crypto industry seems to think that they have a lot of power right now because of the contributions that they’ve made.”
After the vote, Scott’s team made it clear they don’t want crypto donors wasting money on Democrats anymore. Jennifer DeCasper, Scott’s longtime aide and the current Executive Director of the National Republican Senatorial Committee, said, “Anyone backing Senate Democrats in hopes of crypto progress is ignoring reality.”
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