Senate Blocks Crypto Regulation Bill Amid Ethics Concerns
Senate Democrats blocked legislation to create a new regulatory framework for cryptocurrency on Tuesday, stalling an industry-backed effort to place guardrails around digital assets.
The bill, which aimed to give crypto firms legal certainty and protect consumers by creating a broad set of regulatory requirements, was met with opposition from Democrats who demanded stronger ethics safeguards to prevent President Donald Trump's family from profiting from their investments in the sector.
Trump has amassed significant wealth in cryptocurrency during his presidency, including over $500 million in revenue from World Liberty Financial sales of crypto products. His family also controls a stake in the company, which was co-founded with Trump's special envoy Steve Witkoff.
The failed vote raises concerns that the standards for global financial markets will be set by foreign competitors rather than Washington and New York. The White House has indicated that it will now turn to agencies to implement parts of their crypto agenda.