Stablecoin Bill Delay Just a ‘Bump’—Senate Vote Still Looms

Key Insights:

• GENIUS Act delay blamed on Trump’s growing ties to crypto markets.
• Cody Carbone expects Senate vote on stablecoin bill within weeks.
• Revised bill removes Trump references to regain bipartisan support.

The U.S. stablecoin bill remains stalled in the Senate, but the Digital Chamber believes the delay is temporary. Cody Carbone, chief policy officer at the Washington, DC-based blockchain advocacy group, says the legislation will move forward “in the next few weeks.”

The bill, formally titled the Guiding and Establishing National Innovation in U.S. Stablecoins of 2025, or GENIUS Act, failed to pass a procedural vote on May 8. However, Carbone said this should not be viewed as a collapse.

“Yes, it’s a bump in the road,” Carbone said during Consensus 2025. “But very, very shortly, we will have another vote.”

Stablecoin legislation faces political headwinds

The setback followed growing partisan tension in Washington. Several Democratic lawmakers reportedly pulled support for the GENIUS Act over concerns about President Donald Trump’s deepening involvement in crypto markets.

His engagement in the memecoin space and NFT sector has drawn ethics concerns from Democrats. Some have accused Republicans of using stablecoin regulation to push pro-Trump digital asset agendas.

Coinbase chief legal officer Paul Grewal also noted the complications Trump’s crypto ties introduced into the legislative process. On X, Grewal wrote:

Trump’s Crypto Links Deepen Senate Divide on Regulation

The bill’s sudden stall drew backlash from Republican lawmakers. Senator Tim Scott, a leading GOP voice on financial services, accused Democrats of sabotaging the bill to avoid giving Trump credit for digital asset regulation.

Scott argued the legislation had bipartisan appeal before internal Democratic shifts, and that stripping references to the Trump family from the bill could help revive support. According to sources, the revised version removes any mention of Trump to increase the chances of a full vote before the end of May.

Industry executives aligned with that view. Without the distraction of partisan framing, the bill can regain traction and pass ahead of the 2026 midterm election cycle.

Tinian pushes ahead as Congress stalls

As Congress struggles to pass the GENIUS Act, one U.S. territory has taken matters into its own hands.

The island of Tinian, part of the Northern Mariana Islands, passed a local bill to issue a stablecoin called the Marianas US Dollar (MUSD). Lawmakers overrode a veto from Governor Arnold Palacios, clearing the path for MUSD’s launch before July.

Rep. Marissa Flores called for “thoughtful deliberation” on the gaming and stablecoin bill. Source: YouTube

The token will be backed by cash and U.S. Treasury bills and run on the eCash blockchain. Its rollout could make Tinian the first public U.S. entity to issue a stablecoin, ahead of Wyoming.

Concerns remain over the bill’s constitutionality and its ties to online gambling. Still, proponents argue it offers an economic lifeline to a region with fewer than 2,100 residents and limited revenue streams.

Stablecoin Rules Seen as Critical for Dollar Leadership

Carbone and other industry figures argue that passing the GENIUS Act would reinforce the dollar’s role in the global financial system. They claim the legislation will provide clarity to issuers and allow dollar-backed stablecoins to scale responsibly.

Stablecoin policy has drawn wide interest due to the role of tokens like USDC and USDT in global remittances, decentralized trading, and digital payments. The lack of a unified regulatory framework has left issuers exposed to shifting interpretations of U.S. securities and banking law.

According to Carbone, finalizing rules now is vital to keep the United States ahead of digital currency innovation abroad. “It’s in the best interest of the U.S. to pass this,” he said. “We must protect the dollar’s place in the global economy.”

Advocates warn that failure to pass the bill could lead to uncertainty and further regulatory gaps, especially with the 2026 election cycle approaching and possible shifts in congressional priorities.

Senate vote still expected by late May

Despite partisan friction, the Digital Chamber remains confident the GENIUS Act will pass soon.

Cody Carbone said the bill should return to the Senate floor “within weeks,” following pressure from industry leaders and revised language that omits Trump-related provisions.

Both parties now face mounting urgency. With the 2026 midterms approaching, delay could stall stablecoin oversight for another cycle.

If approved, the bill would establish the first federal framework for stablecoin regulation in U.S. history.

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