WASHINGTON — The Senate Banking Committee's stablecoin bill failed to get the necessary votes to begin consideration by the full Senate, stalling the bill until lawmakers can reconcile growing Democratic concerns about the Trump family's involvement in the crypto industry.
The vote to invoke cloture, which requires 60 votes in the Senate to advance to the floor for final passage, failed 48-49. That delays but does not kill the legislation, as several Democratic lawmakers said they are still interested in passing a similar bill with greater protections against President Donald Trump and other elected officials from profiting off crypto ventures while in office.
Senate Majority Leader John Thune, R-S.D., changed his vote from yes to no after it became clear that the vote wouldn't get the necessary 60 ayes, and entered a motion to reconsider. Republican Sens. John Hawley of Missouri and Rand Paul of Kentucky also voted no alongside Democratic lawmakers.
"I remain fully committed to getting this right," said Sen. Mark Warner, D-Va., in a statement after he said he would not support the legislation moving forward on Thursday. "I plan to continue working with my colleagues to strengthen this legislation and move it forward in a way that promotes innovation while protecting the interests of the American people. It is my sincere hope that we can start floor consideration next week after we have finalized our work and given our colleagues adequate time to review."
The bill previously
The vote is a victory for progressive lawmakers like Sen. Elizabeth Warren, D-Mass., ranking member of the Senate Banking Committee, and Rep. Maxine Waters, D-Calif., ranking member of the House Financial Services Committee, who up until recently have struggled to hold the party together on crypto issues after a punishing election season where key progressives like Sen. Sherrod Brown, D-Ohio, were unseated with the help of massive spending by the crypto industry.
Waters
The last election saw the rise of a new crop of crypto-friendly Democrats like Sen. Ruben Gallego, D-Ariz., who up until earlier this week said that he backed the legislation. That support is starting to break off, however, as Democratic lawmakers express growing concerns about the Trump family's
"The reason you're hearing some hesitancy on the legislation is that the scope and importance really just cannot be rushed, and we need time both to educate our colleagues and people," Gallego said. "We don't want to shut this down to the point where we are ending all this work that we have put into it."
Bankers, meanwhile, have become
"ICBA understands the importance of having a clear regulatory framework for stablecoins given the significant implications this sector can have on consumers and our payments system," the group said. "Congress should strengthen the prohibition on yield-bearing stablecoins to ensure the intent of the legislation cannot be evaded. Without these limits, Congress would incentivize the migration of retail deposits to stablecoins — which don't offer the same consumer protections — inhibiting community bank lending, increasing borrowing costs, and impairing credit availability."
