Senate Democrats blocked a bipartisan bill aimed at establishing a legal framework for cryptocurrency due to concerns about potential ties between President Donald Trump and the industry. The vote, which took place on May 8, resulted in a 48-49 outcome, preventing a final decision on the legislation. Two Republican senators, Rand Paul of Kentucky and Josh Hawley of Missouri, joined all present Democrats in voting against the bill. Hawley expressed a desire for stricter regulations on big tech within the legislation, while Paul voiced worries about the impact of regulations on the industry.
Senate Republican Leader John Thune also voted against the bill as a procedural tactic to allow for another vote on the matter. The sudden shift in support came after a group of nine Democrats withdrew their backing for the bill, known as the GENIUS Act, citing concerns about its efficacy in combating money laundering and safeguarding national security.
The legislation requires at least 60 votes to pass in the Senate, with support from at least seven Democrats necessary. The bill has garnered strong advocacy from cryptocurrency lobbyists and is expected to spur the growth of digital currencies. Following the vote, Senate Democratic Leader Chuck Schumer noted that an updated version of the bill was not yet available after days of negotiations, questioning how lawmakers could vote on a bill without seeing the final text.
Recent developments have seen the Trump administration endorsing the expansion of the cryptocurrency industry in the U.S., including the establishment of a “strategic bitcoin reserve” and digital asset stockpile, as well as a retreat from the previous administration’s crackdown on the sector. Trump-associated businesses have seen substantial gains from cryptocurrency investments, raising concerns among Congressional Democrats.
Allegations of conflicts of interest have surfaced, with Trump’s family entities benefiting from cryptocurrency ventures. Investigations and scrutiny have followed these revelations, with Democrats raising questions about potential foreign influence on Trump’s crypto assets. Sen. Richard Blumenthal criticized Trump’s involvement in cryptocurrency deals, likening it to a Wild West scheme and questioning the president’s connections to foreign entities.
Amidst these developments, the fate of the cryptocurrency bill remains uncertain, with negotiations ongoing and the industry’s future hanging in the balance.
