Democrats who had sided with the rest of their party last week to block the measure over concerns that President Trump could benefit dropped their objections. They argued that regulating the industry was urgent.
The Senate on Monday revived a first-of-its-kind bill to regulate parts of the cryptocurrency industry, after a small number of Democrats who had joined the rest of their party in blocking the measure joined Republicans in allowing it to advance.
The vote was 66 to 32 to move forward with the legislation, which would create a regulatory framework for stablecoins, a type of cryptocurrency tied to the value of an existing asset, often the U.S. dollar. Sixteen Democrats joined the majority of Republicans in support, acting over the opposition of most others in their party, who were concerned that President Trump and his family were inappropriately profiting from crypto.
The vote was a victory for the cryptocurrency industry, which has made significant advances in Washington with the backing of Mr. Trump and a bipartisan group of lawmakers. It suggested that the measure would have enough support to pass the Senate and potentially make it to Mr. Trump’s desk in short order. A parallel effort in the House has faced similar backlash from Democrats, who earlier this month blocked a hearing on the legislation but are unlikely to have the votes to prevent it from passing.
In the Senate, a bloc of Democratic supporters had pressed in recent days to include stronger consumer protections and transparency requirements in the legislation, as well as provisions aimed at combating money laundering and terrorism financing.
But the most animating worry for Democrats was that the legislation could enable the president and his family to profit by issuing their own stablecoins. Concerns over the Trump family’s involvement in the industry intensified after reporting by The New York Times showed how a firm associated with the president had recently become one of the most influential players in the industry.
In a prolonged round of bipartisan negotiations over the bill, Republicans steadfastly refused to consider adding any provision to rein in Mr. Trump’s involvement in the industry, or make any modification that could interfere with his or his family’s ability to benefit.