Senate Blocks Cryptocurrency Regulation Bill Amid Ethics Dispute

WASHINGTON — The U.S. Senate on Tuesday failed to advance a sweeping cryptocurrency bill designed to establish the first comprehensive federal regulatory framework for digital assets.

Opponents said the bill raises concerns over consumer protection, national security and government ethics. 

Republicans had revised the Clarity Act to address Democratic concerns, including adding ethics provisions concerning federal officials’ cryptocurrency holdings.

Democrats argued the changes did not go far enough, particularly regarding potential conflicts over President Donald Trump and his family’s cryptocurrency interests.

One of the skeptics was Sen. Elizabeth Warren, D-Mass., the Senate Banking Committee’s ranking Democrat.

“We need crypto legislation, but not a crypto bill written by the crypto industry to benefit only the most extreme voices in the crypto industry,” Warren said.

The procedural vote was 49-to-50, falling short of the 60 votes required to advance the legislation.

The cryptocurrency industry spent years and millions of dollars to try to convince Congress clearer regulations are needed to encourage the growth of digital assets. One provision would extend traditional anti-money laundering requirements to cryptocurrency platforms.