Senate Rejects Crypto Bill Over Fears of Corruption and Weak Regulation

The US Senate voted against advancing the Digital Asset Market Clarity Act on Tuesday, rejecting a bill that critics argued would fail to effectively regulate cryptocurrencies and allow President Donald Trump to continue profiting from them.

The bill, which aimed to provide clarity on cryptocurrency regulations, was put forward by Republicans but faced strong opposition from Democrats. Sen. Kirsten Gillibrand (D-NY) initially supported the bill but eventually joined all Democratic colleagues in voting against it, along with four Republicans.

Critics argued that the revised version of the bill presented by Republicans failed to meet demands for rules to prevent Trump and other public officials from profiting from their cryptocurrency ventures while in office. Sen. Elissa Slotkin (D-Mich.) said that President Trump, his children, and Cabinet members are making billions of dollars in the crypto space, 'in part from bilking everyday Americans out of their hard-earned money.'

The bill's failure is seen as a significant blow to the cryptocurrency industry, which has spent nearly $190 million during this election cycle to support industry-friendly candidates. Scott Greytak, deputy executive director of Transparency International US, said that 'the need for responsible cryptocurrency regulation remains' and called for Congress to confront two fundamental failures of the legislation: preventing public officials from profiting from crypto and ensuring law enforcement can follow the money.