WASHINGTON (AP) — Senate Democrats have hampered laws regulating stubcoin, a form of cryptocurrency, after claiming that the bill needed stronger protections and that President Donald Trump would help enrich himself.
The bill, which regulated how Stablecoin publishers operate in the US, previously won democratic support. But it failed 49-48 in procedural vote Thursday after Democrats said they needed to see more changes to the law before backing it up.
Senate majority leader John Toon said he would work with Democrats if Republicans allow them to advance the bill, but they refused. All Democrats voted not to raise it.
The vote is one of Trump’s top priorities, a set-off for the cryptocurrency industry, spent a lot of money in last year’s elections and encouraged to solidify its impact in politics and the mainstream financial system. The Act aims to create a federal framework to regulate the Stablecoin industry, currently managed by a patchwork of existing federal and state laws.
Stablecoins is a burgeoning corner in the cryptocurrency industry that has generated enormous profits for some of the major players involved. They provide buffers from the infamous volatility of Cryptocurrency. Because they are locked into real-world assets like US dollars and gold. Usually, that means a single Stablecoin is worth a dollar, making it a much more reliable digital asset than other forms of crypto.
While some Democrats agreed that regulations were needed, some Democrats voted to move the bill off the committee, Trump’s involvement in the crypto industry complicated the legislative path. Trump launched Member Coin earlier this year, according to chain analysis at a blockchain analytics company. And earlier this week, Trump promoted dinner to attend on May 22nd.
Another crypto venture linked by another Trump family has announced that it is publishing its own Stablecoin called World Liberty Financial and called USD1. Stablecoin got a big boost last week when global Liberty Financial announced that it would use $2 billion worth of USD1 to buy shares in Binance, the world’s largest cryptocurrency exchange.
Among other proposed changes, Democrats said elected officials and their families should be banned from owning, managing or promoting Stablecoin Business Ventures.
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