The U.S. Senate has blocked legislation intended to establish a nationwide regulatory framework for the $2.3 trillion cryptocurrency market amid a dispute over President Donald Trump’s financial interests in the industry.
Senators voted 49-50 against advancing the CLARITY Act, leaving supporters short of the 60 votes required to proceed.
No Democrats voted to advance the legislation.
Democratic senators argued that stronger ethics provisions were needed to prevent presidents and their families from personally benefiting from an industry regulated by their administration.
Trump’s annual financial disclosure reported more than $500 million in revenue from World Liberty Financial sales of crypto products, according to the Associated Press.
That represented part of more than $1.4 billion Trump reported from cryptocurrency businesses last year.
Trump agreed to some ethics concessions during negotiations, including restrictions on elected federal officials issuing certain digital assets and additional enforcement powers for state attorneys general.
Democrats sought stronger provisions, including stricter enforcement and requirements for presidents to divest holdings above specified levels.
Republicans supporting the legislation argue that a national framework would provide greater legal certainty, consumer protection and enforcement against bad actors.
The failed procedural vote does not permanently end efforts to regulate cryptocurrency.
But with Congress due to spend much of October out of session and the midterm elections approaching, the opportunity to pass legislation this year has narrowed considerably.
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