Amid growing tensions within the Republican Party and bipartisan mistrust, a major cryptocurrency regulatory bill in the U.S. Senate has faced significant delays after a key Republican senator expressed reservations, effectively pumping the brakes on the GOP-led legislative effort. This move reflects ongoing uncertainty about the direction and structure of crypto regulation in Washington.
The Senate vote to advance the GENIUS Act, a bipartisan bill designed to regulate stablecoins and provide clearer oversight for the cryptocurrency market, failed narrowly in early May 2025 with a 48-49 tally. This defeat was a blow to hopes for quick passage, especially after the bill initially seemed likely to succeed easily. Two Republican senators, including Missouri’s Josh Hawley and Kentucky’s Rand Paul, joined Democrats in voting against the bill, exposing fractures within the GOP over crypto policy. Democrats also criticized the process, arguing they were not given enough time to review last-minute changes proposed by Republicans, while Senate GOP leadership accused Democrats of lacking genuine effort to negotiate compromises[1].
This partisan deadlock has spilled over into the House, where Democrat-led crypto legislation has also faced resistance and lengthy procedural battles. Yet, after a record-breaking nine-hour debate in the House, Republicans finally advanced three crypto-related bills to the floor, including legislation to block the Federal Reserve from issuing a central bank digital currency (CBDC). This bill, known as the Anti-CBDC Surveillance State Act, was strategically attached to the must-pass National Defense Authorization Act (NDAA), a move assured by GOP leaders to guarantee its consideration. House GOP Whip Tom Emmer emphasized the importance of protecting Americans’ data privacy and warned against surveillance risks likened to those in China’s governance model. Former President Donald Trump has voiced support for this crypto push, highlighting his administration’s embrace of the digital asset space, including personal cryptocurrency ventures[2][3].
Senate Republicans meanwhile are preparing an updated version of the crypto market structure bill. The revised legislation aims to allocate regulatory responsibilities between two key agencies: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This division of authority is viewed as essential to clarifying oversight and fostering a robust but well-regulated crypto market. However, GOP internal disagreements remain, especially over how comprehensive the rules should be and the balance between innovation and investor protection[4].
The legislative delays underscore broader challenges for Congress as it attempts to regulate the fast-evolving cryptocurrency industry. Lawmakers must balance the need for effective oversight to prevent fraud and financial instability with the desire to support innovation and maintain U.S. leadership in digital assets. Moreover, the partisan dynamics, including resistance from some Republicans worried about federal overreach and Democrats pushing for tighter consumer protections, make swift consensus difficult.
As the crypto market continues to grow and incidents of fraud and market volatility capture public attention, the stakes for enacting thoughtful regulation rise. Senate Majority Leader John Thune has indicated efforts will continue to bring the crypto bills back for votes, signaling that while progress has slowed, the legislative battle is far from over. For now, the mixed signals from within the GOP and between parties illustrate the complexity of crafting a cohesive regulatory framework reflecting diverse ideological and policy priorities.
Observers expect the Senate to revisit the GENIUS Act once the updated version addresses concerns raised in previous negotiations, possibly in the coming weeks or months. Meanwhile, House advancements signal a separate but interlinked pathway for crypto legislation, reflecting the multifaceted approach Congress is taking towards digital currencies and blockchain technologies.