WASHINGTON — A crypto bill cleared a key Senate hurdle

WASHINGTON — A crypto bill cleared a key Senate hurdle as a group of Democrats got back on board with the legislation

A group of Senate Democrats got back on board with a crypto bill on Monday, setting the stage for the legislation to pass after they had previously balked over President Donald Trump’s digital asset self-enrichment schemes.

The Senate voted 66-32 to proceed to the legislation, with 16 Democrats in favor and two Republicans against. A simple majority vote was needed to begin debate on the bill, setting the stage for it to pass later this week.

The House passed a version of the bill earlier this month, but Democrats voted no as Sen. Elizabeth Warren (D-Mass.) raised several concerns and signaled that there weren’t enough changes. After a weekend of negotiations, Senate Banking Chairman Mark Warner (D-Va.), one of the lead negotiators on the recent changes, signaled earlier on Monday it was the best they could do.

“Many senators, myself included, have very real concerns about the Trump family’s use of crypto technologies to evade oversight, hide shady financial dealings, and personally profit at the expense of everyday Americans,” Warner said in a statement.

“But we cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay,” Warner said. “If American lawmakers don’t shape it, others will – and not in ways that serve our interests or democratic values.”

Warner voted for the bill along with fellow Democratic Sens. Angela Alsobrooks (Md.), Lisa Blunt Rochester (Del.), Catherine Cortez Masto (Nev.), John Fetterman (Pa.), Ruben Gallego (Ariz.), Kirsten Gillibrand (N.Y.), Maggie Hassan (N.H.), Martin Heinrich (N.M.), Ben Ray Luján (N.M.), Jon Ossoff (Ga.), Alex Padilla (Calif.), Jacky Rosen (Nev.), Adam Schiff (Calif.) and Elissa Slotkin (Mich.).

The vote came as the Trump family has been making millions from both stablecoins and meme coins since Trump took office this year, and the president is set to host a dinner and reception Thursday for the 225 biggest investors in his $TRUMP coin, which, like other meme coins, has no inherent value.

Now, the Senate bill is setting up regulations for stablecoins, a type of digital asset with a fixed value that is often used in transactions. The bill’s backers see it as the first step in winning legitimacy for an industry best known for scams and speculation.

Ezra Levin, co-director of the progressive group Indivisible, said the Senate Democrats are muddying the party’s message as Trump is selling coins and Republicans are passing tax cuts for the rich funded by cuts to programs for the poor.

“This week should be about two things: Republicans in Congress doing a smash and grab to gut Medicaid to give huge tax breaks to billionaires, and Donald Trump accepting massive bribes in the form of crypto payments and multi-million dollar jets,” Levin said. “Instead of that clear message, a handful of Senate Dems decided they’d rather do a big favor for the crypto industry and legitimize an avenue for Trump to collect bribes.”

Democrats won several small changes to the bill, including a ban on publicly traded companies issuing their own stablecoins, something critics feared would allow companies to force customers to use their own special currency. The bill would still allow private nonfinancial companies to issue stablecoins, and public companies could apply for an exemption.

In a floor speech on Monday, Warren said the bill essentially legitimizes the industry Trump is using for his own self-enrichment, noting one industry analysis found the law would vastly expand the market for stablecoins.

“It is fitting that we are voting on the GENIUS Act just a few days before President Trump hosts a private intimate dinner and a VIP White House tour for the top investors in his meme coin — many of whom remain anonymous,” Warren said.

“And, for this first time in American history, it also makes our president – Donald Trump – the regulator of his own financial product,” Warren said.

The Senate will still have to hold more votes on the bill before it can pass, but getting enough Democratic support to defeat a filibuster on Monday evening was the biggest obstacle to its eventually clearing the chamber.