With Trump’s backing, GOP pushes for sweeping crypto regulations

WASHINGTON (NEXSTAR) - Backed by President Donald Trump, Republicans are ramping up efforts to pass sweeping regulations on the cryptocurrency industry but skepticism from both Democrats and some Republicans is clouding the path forward.

While cryptocurrencies still represent a small portion of the U.S. economy, lawmakers from both parties say digital assets are poised to become a dominant force in global markets. “This is about the blockchain technology and every single industry over the course of the next 20 or 30 years, the back end of that industry is going to be transformed by blockchain,” said Rep. Dusty Johnson (R-S.D.).

Johnson is leading a Republican push to establish clearer regulatory guidelines for the crypto industry a push he says will unleash innovation domestically and give the U.S. an advantage over China.

“We need basic rules of the road to make sure that innovators have predictability and consistency,” he said.

Crypto markets have long been susceptible to fraud and criminal misuse. Rep. Bill Huizenga (R-Mich.) says the lack of regulation leaves consumers vulnerable and stifles innovation.

“We don’t have regulation right now,” Huizenga said. “It’s vital.”

Last week, the Senate failed to advance a measure, dubbed the GENIUS ACT. The bill is aimed specifically at regulating stablecoins, digital currencies pegged to the U.S. dollar that are used for transactions and transfers.

“The question is, does this bill actually regulate anything? And the answer is no,” said Sen. Jeff Merkley (D-Ore.).

Merkley and other Democrats argue the bill doesn’t go far enough and have raised ethical concerns about potential conflicts of interest.  President Trump and members of his family recently launched their own digital coin, prompting accusations of self-dealing.

“Self-dealing. Pure and simple,” Merkley said.

President Trump, speaking in Qatar, dismissed questions about foreign investment in the coin.

“I don’t know anything about it,” Trump said.

Sen. Josh Hawley (R-Mo.) also opposes the GENUIS Act but for different reasons. He says it could give major tech corporations too much influence over the financial system.

“If you're concerned about what one private individual is doing, how much more should you be concerned about the biggest corporations in the world issuing their own currencies?” Hawley asked. “Is that really what we want?”

Despite the disagreements, there is bipartisan momentum for broader crypto regulations. Johnson says he expects a compromise bill to reach Trump’s desk within the next six months.