Gillibrand's Vote Blocks Trump Crypto Bill

The Clarity Act failed to advance in the Senate. The vote count was 49 to 50 against the motion. This result falls short of the 60 votes required for a full debate. Senator Kirsten Gillibrand cast a vote against the bill. She had previously lobbied colleagues to support the legislation. This shift occurred hours before the final tally.

Progressive Democrats blocked the measure. They cited conflicts of interest regarding President Donald Trump. Trump earned $1.4 billion in crypto profits last year. Critics argued the bill would benefit his personal holdings. Four Republicans also voted against the motion. The bill did not reach the floor for debate.

Internal Democratic Pressure Shifts Stance

Gillibrand urged her colleagues to pass the bill earlier in the week. She advocated for a regulatory framework for the industry. Her office stated she wanted to debate ethics reforms publicly. This position contradicts her final vote. The progressive group Demand Progress criticized this reversal. They called the bill a corrupt deal.

Moderate Democrats face pressure from both sides. They previously backed crypto-friendly regulations. Trump’s large profits have made them reluctant to support the industry publicly. The bill aimed to create a regulatory structure. It also included provisions on presidential ethics. These provisions were the subject of intense negotiation.

Critics Cite Loopholes In Ethics Provisions

Senator Elizabeth Warren warned against passing the bill. She stated it would bless Trump’s corruption. Staffers on the Senate Banking Committee identified specific flaws. A provision allowing state attorneys general to sue the president was weak. Officials directed by Trump could issue opinions to stop enforcement. Another provision regarding blind trusts did not prevent self-dealing.

Senator Cynthia Lummis defended the bill’s bipartisan nature. She highlighted Gillibrand’s role in negotiations. Lummis argued the White House made significant concessions. She urged the Senate to accept the compromise. She described the ethics provisions as a major win for the president.

Banking Industry Opposes Regulatory Framework

The banking sector also opposed the legislation. Industry representatives argued against the proposed rules. They lobbied members of Congress against the bill. This opposition added to the political pressure. The Clarity Act remains stalled in the current session. No further action is scheduled immediately.

The outcome reflects the current political climate in Washington. Crypto regulation remains a contentious issue. The vote ends the immediate legislative push. The Senate will not debate the bill now. The matter may return in future sessions. The source for this report is GN markets/crypto (en-US).