Senate Blocks Crypto Regulation Amid Concerns Over Trump Investments

Senate Democrats on Tuesday blocked legislation to create a new regulatory framework for cryptocurrency, stalling an industry-backed effort to place new guardrails around digital assets. The bill was aimed at giving the industry more legal certainty and protect consumers by creating a broad set of regulations.

The 49-50 vote against moving forward with the legislation was a pivotal election-year test for the $2.3 trillion cryptocurrency market, which has pushed aggressively for uniform rules.

Some Democrats are friendly toward the industry and support regulation, but they have demanded stronger ethics safeguards to prevent President Donald Trump and his family from enriching themselves while in office.

The opposition appears to have only solidified two months before the midterm elections, despite significant donations that crypto groups have given to some Democrats in recent years.