U.S. Senate fails to advance sweeping cryptocurrency bill in blow for industry
Four Republican senators joined Democrats in voting against the legislation, which was backed by President Donald Trump.
The attempt to pass comprehensive US cryptocurrency legislation crumbled in the Senate on Tuesday after Republicans and Democrats could not reconcile differences on ethics, banking and regulation. The Digital Asset Market Clarity Act fell short of the 60 votes required to move to debate, with safeguards limiting President Donald Trump's crypto-related interests cited as the main obstacles.
Massachusetts Senator Elizabeth Warren, the top Democrat on the Senate banking committee, deemed the bill "a massive risk to families, our national security, and our economy", adding it would boost President Trump's ability to generate billions from crypto while Americans grapple with an affordability crisis. The 600-page bill would have divided oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, replacing the current patchwork of regulations.
The House had previously passed a version of the bill last year, and the Senate committee endorsed it on a bipartisan basis in May. However, months of talks failed to produce a resolution capable of withstanding the Senate floor, despite heavy lobbying from the crypto industry and a last-ditch effort by Republicans to revise the legislation.
The defeat, coming before the November mid-term elections, could effectively halt the effort until a new Congress is seated. Ethics concerns centered on Trump's extensive crypto investments, with Democrats arguing that the bill's provisions were weak and left too much power to Trump-appointed officials. Community banks opposed provisions allowing rewards on stablecoin holdings, fearing they would pull deposits out of traditional lenders and diminish funding for farmers and small businesses.
Some Republican senators voiced reservations about these provisions, making it difficult for party leaders to secure support for the bill. The crypto industry's inability to secure legislation despite years of negotiations and massive lobbying efforts underscored the challenge lawmakers face when grappling with rapidly evolving technologies.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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