Senate blocks crypto regulatory framework

WASHINGTON -- Senate Democrats on Tuesday blocked legislation to create a new regulatory framework for cryptocurrency, stalling an industry-backed effort to place new guardrails around digital assets after demanding more limits on President Donald Trump's investments.

The 49-50 vote on whether to move forward with the legislation was a pivotal election-year test for the $2.3 trillion cryptocurrency market as the industry has pushed aggressively for a uniform set of rules. The Senate debate came as cryptocurrency companies have become a major political force, and as Trump has amassed significant wealth in crypto while in office.

While some Democrats are friendly toward the industry and support the idea of regulation, they have been adamant that the bill include strong ethics safeguards to prevent the president and his family from enriching themselves while he's in office. The opposition appears to have only solidified two months before the midterm elections, despite significant donations that crypto groups have given to some Democrats in recent years. In the end, no Democrats supported it.

GOP Sens. Susan Collins of Maine, Josh Hawley of Missouri and Jerry Moran of Kansas joined all Democrats present in voting against the measure. Sen. Thom Tillis, R-N.C., changed his vote from "yes" to "no" so that he could enter a motion to reconsider the bill at a later time under Senate procedures.