WASHINGTON – Senate Democrats blocked a bipartisan bill to create a legal framework for cryptocurrency after concerns about President Donald Trump’s connections to the industry threw negotiations over the bill into chaos.
The chamber voted 48-49 on May 8, averting a final vote on the legislation. Two Republicans, Sens. Rand Paul of Kentucky and Josh Hawley of Missouri, voted with all present Democrats against it. Hawley told reporters after the vote that he wanted “big tech prohibitions” in the legislation, while Paul raised concerns that regulations could hurt the industry.
Senate Republican Leader John Thune also voted against it in a procedural move that will allow it to come up for another vote.
The vote caps a week of frantic negotiations after a group of nine Democrats who had previously supported the bill abruptly announced on May 3 that they would no longer support the stablecoin bill, dubbed the GENIUS Act, citing concerns that the legislation didn’t do enough to prevent money laundering and protect national security.
At least seven Democrats would be needed to pass the legislation in the Senate, where lawmakers need at least 60 votes to overcome the filibuster. The bill has been aggressively supported by crypto lobbyists and is expected to accelerate the currency’s growth.
Senate Democratic Leader Chuck Schumer of New York told reporters after the vote that an updated bill text wasn’t yet available after the days of negotiations. “How do you vote for a bill if you haven’t seen the text?”
The change came after the Trump administration moved to support the crypto industry’s growth in the United States, including creating a “strategic bitcoin reserve” and digital asset stockpile, and pulling back from a Biden-era crackdown on the industry.
At the same time, Trump family businesses with connections to crypto are benefiting.
Two cryptocurrency investments owned by Trump-affiliated entities have made at least $300 million in trading fees alone since January on sales of his meme coin and other digital currency.
In late April, a company affiliated with Trump promoted the $TRUMP meme coin by offering an “intimate private dinner” with the president at his northern Virginia golf club, after which the coin’s value grew as much as 80%.
And another Trump family crypto firm, World Liberty Financial, announced on May 1 that one of its digital coins is being used by an Abu Dhabi government-backed investment firm for a $2 billion investment in cryptocurrency exchange Binance − a major outlay from a foreign government to the benefit of Trump’s family.
A White House spokeswoman said Trump’s “assets are in a trust managed by his children, and there are no conflicts of interest.”
These moves have prompted investigations and a committee hearing walkout from Congressional Democrats in recent days.
“Donald Trump is selling cryptocurrency like snake oil in the Wild West, and he’s put a for sale sign on the White House for his meme coin,” Sen. Richard Blumenthal told USA TODAY. “People in America deserve to know how he is potentially under the influence of foreign governments and investors who are buying his crypto assets.”
Josh Meyer contributed.
This article originally appeared on USA TODAY: Landmark cryptocurrency bill blocked over concerns about Trump
