Treasury Secretary Bescent blows up Senate for blocking the genius stubcoin bill

The Senate’s decision to block the Genius Act on Thursday was immediately denounced by Treasury Secretary Scott Bescent, warning that the vote could endanger the US’s position in the global digital assets race.

“The world needs American leadership for Stablecoins and other digital assets to flourish globally,” Bessent Posted X. “The Senate missed the opportunity to offer that leadership today by failing to advance the act of genius.”

This bill was designed to establish a federal regulatory framework for issuing the bill; Could not be handed over to procedural votes Thursday after major Senate Democrats moved to Stonewall.

He enjoyed bipartisan support earlier this year, but Democrats I pulled back In the final time, I cite concerns about national security, anti-money laundering clauses and sudden introduction of new languages.

“Once a generation”

Bescent called the genius law “a one-time opportunity to expand the dominance of the dollar and expand the US influence in financial innovation.”

Without that, he said, “Stubcoin would be subject to a patchwork of state regulations, instead of a streamlined federal framework.”

The defeat of the Genius Act has cast uncertainty about Stablecoin surveillance and broader efforts to pass the Digital Assets Act ahead of the 2026 medium-term elections. It was contested.

“The world is watching while American lawmakers mess with their thumbs,” writes Bescent. “Step up and lead or digital asset innovations move offshore.”

Sen. Mark Warner (D-VA), one of several Democrats who voted to block the bill, said it was incomplete.

“I cannot simply ask my colleagues to vote for this law when the text is not finished,” Warner said in a statement Thursday.

Others pointed Political tension It was sparked by recent crypto-related support from President Donald Trump, who some lawmakers believe are undermining the reliability of the bill.

Senator Elizabeth Warren has Continuously warned Advancement of the law without safety measures is to “help and bet Trump’s corruption.”

Still, there remains hope for a revival.

Crypto Policy Leader I said Decryption The bill could return to the floor as early as next week, but it admitted that prospects were uncertain.

Senator Warner also pointed out that timeline and said he hopes the Senate will “start floor reviews next week” after the revised text is complete and colleagues have time to review it.

Sen. Cynthia Ramis (R-WY), a longtime advocate for digital asset policy, called the bill’s failure a serious setback.

“No doubt, digital assets are the future, and America must lead the way,” she said. Tweet Thursday, thanking her Procrypt colleagues.

While the genius has come to an end, industry voices say the greater push for crypto regulations remains a top priority for lawmakers and industry leaders alike.

Coinbase CEO Brian Armstrong Tweet “Both sides are deeply interested in getting clear rules for cryptography and getting them right,” he added over the years, “Crypto is not only at the table, but at the top of the agenda.”

edit Sebastian Sinclair