The Democratic Party voted down the Senate Crypto Assets bill.

Original title: Democrats vote to reject Senate crypto bill

Source: POLITICO

Original text compiled by: BitpushNews

Tennessee Republican Senator Bill Hagerty, as the main sponsor of the bill, stated during a Senate speech that voting against the motion is equivalent to “killing the cryptocurrency industry in the United States, which is too bad.” George Walker IV/AP

On Thursday, Senate Democrats voted down a procedural motion that would have allowed the Senate to consider a landmark cryptocurrency legislation led by Republicans. This dealt a significant blow to Republicans’ first major policy push after gaining control of both the House and Senate, as well as the White House.

The Senate voted down the motion to advance the cryptocurrency bill with a result of 48 votes in favor and 49 votes against, failing to reach the required 60-vote threshold, thus blocking the bill. The previous week, chaotic negotiations took place between Republican supporters and key Democratic opponents. All Democratic senators and three Republican senators—including Rand Paul from Kentucky and Josh Hawley from Missouri—voted against the motion. Democratic negotiators had pushed to delay the vote until next week to allow more time for discussions with members about potential amendments, but Republican leaders insisted on moving forward with the vote.

Arizona Democratic Senator Ruben Gallego stated, “We need time.” He previously supported the committee version of the bill and assisted Democrats in negotiations this week. He emphasized, “We are not looking to completely terminate the effort, nor do we want to deny all the work we have put in. We want to bring this economy and innovation to the United States.”

This vote represents a significant setback for Senate Majority Leader John Thune and other Republican supporters of cryptocurrency, potentially jeopardizing the Republican Party’s broader efforts this year to advance several crypto-friendly digital asset legislations. Thune voted against the bill and submitted a motion for reconsideration, which would allow him to bring the bill back to the Senate in the future.

The main sponsor of the bill, Tennessee Republican Senator Bill Hagerty, stated during a speech in the Senate that voting against the motion is equivalent to “killing the cryptocurrency industry in the United States, which is a shame.” He and other Republicans urged Democrats to support the procedural motion to allow more time for discussion before the final vote.

Thune said in the Senate on Thursday morning: “If senators want a chance to further amend the bill, I encourage them to support the motion to end debate. Once we enter the bill discussion phase, we can publicly discuss amendments in the Senate. We have maintained an open process on this bill, so why stop now?”

The bill aims to establish the first regulatory framework in the U.S. for digital tokens linked to the dollar, known as stablecoins. The bill had previously received bipartisan support but faced obstacles over the weekend when nine potentially supportive Democrats stated that they did not back the latest version introduced by Republican leaders before the floor vote.

Key Republicans, including Hagerty and Wyoming Senator Cynthia Lummis, held several closed-door meetings this week in an attempt to persuade these Democratic opponents to discuss potential amendments that could attract support from Democrats. However, negotiations failed to reach a substantive agreement before the vote.

Democratic opponents who did not directly participate in this week’s negotiations expressed just hours before the vote that they were unaware of the possible contents of the agreement. Colorado Democratic Senator John Hickenlooper stated, “I will not vote in favor if I do not know the contents of the bill.” He had signed the Democratic statement over the weekend, stating that the latest version of the bill was insufficient to support. “We have been through multiple versions before, and they said the text contained certain things, but the actual content was not what we expected.”

This vote is a victory for Massachusetts Democratic Senator Elizabeth Warren, who has consistently opposed the Republican-led stablecoin bill. Before the vote, she told reporters: “The only version we’ve seen is the one put forward by the Republicans, and it has issues in four major areas.” She claimed the bill would “foster Trump’s corruption,” threaten national security, undermine consumer protection, and “pose a great risk of ultimately destroying the U.S. economy.”

Democratic supporters of cryptocurrency have stated that they remain committed to reaching a viable agreement. Virginia Democratic Senator Mark Warner, one of the key opponents and a major participant in this week’s negotiations, stated in a statement: “While we have made substantial progress on the GENIUS Act, the work is not yet complete, and I cannot in good conscience ask my colleagues to vote on an incomplete bill text. I remain fully dedicated to ensuring the bill is perfected. I plan to continue working with my colleagues to strengthen this legislation to promote innovation while protecting the interests of the American people.”

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