Gillibrand's Last-Minute Flip on Crypto Bill Helps Block Trump-Backed Legislation

Democratic Senator Kirsten Gillibrand of New York has been a long-time supporter of the cryptocurrency industry, but she surprisingly switched sides at the last minute to help block a bill that would have created a regulatory framework for crypto.

The bill, which had bipartisan backing and was seen as a way to rein in President Donald Trump's lucrative cryptocurrency ventures, fell short of the 60 votes needed to proceed after Gillibrand joined all Democrats in voting against a motion to advance it.

Gillibrand's flip-flop is seen by some as a reflection of the bind that Trump has placed on moderate Democrats during his second term. Many centrists had previously backed crypto-friendly regulations, but the historic scale of Trump's profits from his meme coin and other crypto ventures has made them reluctant to publicly side with the industry.

The bill's critics, including Senator Elizabeth Warren, argued that it would allow Trump to add to his $1.4 billion in cryptocurrency profits last year. They also pointed out that key provisions of the bill were essentially dead letters due to loopholes and that the president could still use his crypto assets to increase his own profits.

The vote could create a liability for Democrats heading into the midterms, with crypto industry super PACs having a massive war chest to target vulnerable Democrats. Warren argued that voters want to know that candidates are willing to defy well-funded industries and that it is the job of elected officials to stand up against corruption.

The White House had offered concessions to Democrats, but critics said they were insufficient. The bill's sponsors argued that it was a bipartisan effort and that Trump had given more than expected in negotiations, but Warren and others said that the supposed concessions were shot through with loopholes.