Senate Blocks Crypto Regulation Bill Amid Trump Family Profits 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 aimed to give the $2.3 trillion crypto market more legal certainty and protect consumers by creating a broad set of regulations.
The move was met with pushback from Senate Democrats who demanded stronger ethics safeguards to prevent President Donald Trump's family from profiting off their investments in cryptocurrency. While some Democrats were open to negotiating, no Democrat ultimately supported the bill.
Trump agreed to some changes on ethics, including new restrictions on federal elected officials and additional powers for state attorneys general. However, these concessions were not enough to sway the Democrats, who said the bill still needed stricter enforcement and a requirement for Trump or any future president to divest if holdings reach a certain value.
The failed vote is seen as a pivotal election-year test for the crypto industry, which has become a major political force in recent years. The industry has donated significantly to both parties around the country, with the crypto sector spending over $130 million in congressional races last year alone.