Senate Democrats block first-of-its-kind bill regulating cryptocurrency

CNN
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Senate Democrats blocked a first-of-its-kind bill aimed at regulating cryptocurrency in the US amid Democratic concerns over President Donald Trump’s cryptocurrency dealings.

The vote came after months of intense negotiations between Democrats and Republicans.

The final tally was 49-48, with GOP Sens. Rand Paul and Josh Hawley joining Democrats to vote against advancing the bill.

The bill, dubbed the GENIUS Act, focused on what is known as “stablecoin,” a digital currency tied to the value of a specific asset — in this case the US dollar. The push for the bill represented a rare bipartisan effort in the Senate for major legislation. But while there is general agreement across the Senate that regulation is necessary, key Democrats ultimately balked at moving ahead after demanding changes to the legislation.

After it became clear that Senate Republicans planned to put the bill on the floor this week, nine Senate Democrats who had been open to backing the bill penned a letter last Saturday saying they needed further changes to the legislation, beyond addressing concerns over Trump’s crypto dealings, before they could vote to advance it.

“The bill as it currently stands still has numerous issues that must be addressed, including adding stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability for those who don’t meet the act’s requirements,” they wrote.

Earlier Thursday, Senate Majority Leader John Thune pushed for enough Democrats to vote for the bill so that they could reach the 60-vote threshold needed to advance it, insisting negotiations could continue on the details of the legislation after clearing the hurdle.

“If senators would like the opportunity to make further modifications to the bill, I encourage them to vote for cloture. Once we’re on the bill, we can discuss changes here on the floor,” he said. “We’ve had an open process on this bill so far, so why stop now?”

Democratic Sen. Elizabeth Warren has led the charge against the bill, arguing that the GENIUS Act will “supercharge Donald Trump’s corruption,” and that it does not have the necessary guardrails to protect consumers. Warren added that this kind of regulation is necessary, but that the bill was not adequate.

“The only version of this bill that we have seen is one that the Republicans put out, and it has four major areas that are problems. The first one is it would supercharge Donald Trump’s corruption. The second is that it puts national security at risk,” she argued.

“The third is that it undercuts consumer protection and…