2 hrs ago
Trump-backed crypto bill blocked in Senate as Bitcoin falls 5%
The US Senate stopped a bill that would have created broad rules for cryptocurrency.
Four Republican senators joined Democrats to vote against it.
Some lawmakers worried that President Donald Trump could benefit from the bill because of his family’s crypto businesses.
Others worried that stablecoin rewards could pull money away from community banks.
The bill’s supporters said the crypto industry needs clear, lasting rules from Congress.
Without the bill, regulators such as the SEC and CFTC will continue to have a larger role.
The measure might be brought back later, but lawmakers have little time before the elections.
Bitcoin and some crypto-related company shares fell after the bill appeared likely to fail.
The Senate rejected a bill intended to establish the first comprehensive federal rules for digital-asset markets.
Republican Senators Jerry Moran, Rand Paul, Josh Hawley and Thom Tillis joined Democrats in opposing the measure.
Critics cited President Donald Trump’s crypto business interests, national-security concerns and stablecoin rewards that community banks opposed.
The bill could return for another vote, but Congress has limited time before leaving Washington ahead of the November midterm elections.
Bitcoin fell more than 5%, while Coinbase and Circle shares dropped as much as 10% after the vote appeared likely to fail.
- Who
- The United States Senate, Democratic and Republican senators, President Donald Trump, regulators and the crypto industry were involved.
- What
- The Senate blocked a bill that would have created comprehensive federal rules for digital-asset markets.
- Where
- The vote took place in the United States Senate in Washington.
- When
- The vote occurred before Congress is scheduled to leave Washington ahead of the November midterm elections; Bitcoin recorded its biggest daily percentage decline since June.
- Why
- Opponents cited Trump’s crypto business interests, risks to families and national security, and concerns that stablecoin rewards could draw deposits away from community banks.
Critics of the bill
Supporters of the bill
Trump’s crypto interests
Critics of the bill
Democrats, including Elizabeth Warren, argued that the bill could increase Trump’s ability to profit from crypto and create risks for families, national security and the economy.
Supporters of the bill
Supporters, including Trump, backed the measure as a way to establish federal rules for the digital-asset market.
Stablecoin rewards
Critics of the bill
Community banks and some Republicans worried that rewards on stablecoin holdings could move customers’ money out of bank accounts, reducing funds available for lending.
Supporters of the bill
The bill retained provisions that supporters considered part of a broader framework for regulating digital assets, though the articles do not identify a specific defense of the rewards provision.
Congressional legislation versus regulators
Critics of the bill
Critics’ concerns contributed to the bill’s defeat, leaving the industry without the proposed congressional framework.
Supporters of the bill
Crypto executives and analysts said only Congress can provide lasting rules, warning that regulator-made rules may change with political conditions and face legal challenges.
Key facts
- Bill’s purpose
- To establish the first comprehensive federal rules for digital-asset markets in the United States.
- Republican opponents
- Jerry Moran, Rand Paul, Josh Hawley and Thom Tillis joined Democrats against the bill.
- Trump crypto earnings
- Trump has earned more than $1.4 billion from his family’s crypto ventures, according to the article.
- Banking concern
- Community banks opposed rewards on stablecoin holdings, saying they could lose deposits and have less money to lend.
- Possible next step
- The bill could return for another vote because Tillis changed his vote from yes to no in a procedural move.
- Market reaction
- Bitcoin fell more than 5%, while Coinbase and Circle shares fell as much as 10%.
- Regulatory impact
- The Securities and Exchange Commission and Commodity Futures Trading Commission will have a larger role without new congressional legislation.
Quotes
Elizabeth Warren
Massachusetts senator and top Democrat on the Senate Banking Committee
“And if that’s not bad enough, while Americans across the country suffer from an affordability crisis, this bill will turbocharge President Donald Trump’s ability to rake in billions and billions of dollars from crypto”
businesstoday.in
“massive risks to families, our national security, and our economy”
businesstoday.in
Sources
Related news
Senate Vote Tests Fate of Landmark Clarity Crypto Bill
US Senate Republicans Unveil Final Cryptocurrency Market Bill
Crypto Slide Deepens as Clarity Act Appears Set to Fail
Senate Democrats Block Cryptocurrency Regulation Bill Over Ethics Concerns
Trump Opens Door to More Bitcoin, Pushes Crypto Rules
Bitcoin Rally Cools as Senate Clarity Act Vote Nears
