Cryptocurrency Bill Faces Senate Hurdles Over Trump Family Investments

The Republican Party in the Senate is pushing for a comprehensive cryptocurrency trading regulation bill, but concerns over the Trump family's cryptocurrency investments have become the biggest political hurdle for the bill's passage. The latest draft of the bill, expanded from 35 pages to 182 pages, significantly reduces the discretionary powers of regulatory bodies, aligning it more closely with the House version passed in July. However, the bill faces greater resistance in the Senate, with some Democrats demanding that it specifically address the Trump administration and his family's investments in the cryptocurrency sector.

Democrats have expressed concerns in three key policy areas. Firstly, there is the issue of funding. Democrats have long complained that the Commodity Futures Trading Commission (CFTC), as a smaller financial regulatory body, cannot charge fees to cover operational costs. The Clarity Act, passed by the House, includes limited fee provisions. Secondly, there is the issue of representation. Democrats are concerned that the CFTC currently has only one commissioner in office, and more importantly, they oppose the lack of any Democrat-appointed personnel. The third focus is on vertical integration. In traditional finance, exchanges cannot act as brokers or trade with their own funds on their platforms, but this practice is common in the cryptocurrency world.

Despite policy disagreements, the Trump family's financial interests in the cryptocurrency sector remain the biggest obstacle. Some Democrats hope the bill will specifically address this issue. Republican aides indicated that there are no signs that concessions on the above policy points would sufficiently alleviate Democratic concerns about this political issue, thereby securing enough votes to pass the legislation. Senate staff noted that the digital asset sector is currently unregulated, and opposing any form of market structure regulation could mean forgoing the creation of some regulatory framework in favor of zero regulation.

Even with unanimous Republican support, the bill would require at least seven Democratic senators to advance. The chairman of the Senate Banking Committee previously stated that up to 18 Democrats might consider supporting the bill. However, he acknowledged that internal opposition is a "real obstacle" that needs to be overcome. The latest draft, expanded from 35 pages in its July initial version to 182 pages, significantly reduces the discretionary powers of regulatory bodies, aligning it more closely with the House version passed in July. While 78 Democratic representatives voted in favor of the House bill, the Senate faces greater resistance, with some Democrats demanding that the bill specifically address the Trump administration and his family's investments in the cryptocurrency sector.