A bill to promote stablecoins was blocked in the U.S. Senate on Thursday (May 8) over political disagreements and controversy surrounding President Donald Trump’s crypto ventures, according to reporting from Bloomberg.
The bill only garnered 48 votes, falling short of the 60 votes needed to bring the measure up for consideration. The primary point of contention was a Democratic demand for a provision that would prohibit Trump and other senior officials from profiting from crypto ventures while in office.
The debate occurred against a backdrop of growing scrutiny over Trump’s involvement in crypto, including a memecoin tied to a contest offering holders a chance to attend a private dinner with the president.
Democrats, including Sen. Elizabeth Warren, D-Mass., described such incentives as “blatantly corrupt.” Warren had specifically urged Democrats to filibuster the bill unless the ban was included.
Two Republicans also opposed advancing the bill: Rand Paul, R-Ky., and Josh Hawley, R-Mo. Hawley specifically sought a provision to prevent large tech companies like Amazon and Meta from issuing their own stablecoins.
Despite the setback, many Democrats view stablecoin regulation as essential for consumer protection. Mark Warner, D-Va., who voted against the bill despite earlier acknowledging significant progress in talks, expressed hope that the issue could be revived.
The digital asset industry has advocated for the bill’s passage. Circle Internet Group, a major stablecoin issuer, urged senators to continue working towards a deal.
Trump’s memecoin has courted controversy since its introduction shortly before his inauguration. The coins quickly soared in value from $10 to $70 for a total $15 billion evaluation, with a Trump Organization affiliate owning 80% of the total collection. This immediately spurred accusations of Trump using the office of the presidency for financial gain.
“The public’s gonna get wrecked and obviously the people that are going to make the most money are the insiders,” Stephen Findeisen, a crypto journalist and commentator, said at the time.
Crypto professionals have continued to express skepticism of the Trump coin over the course of his presidency, despite optimism that he will be friendlier to the crypto industry than previous administrations.
Balaji Srinivasan, former chief technology officer at Coinbase, said that memecoins are a zero-sum “lottery” where the “price eventually crashes and the last buyers lose everything.”
