Trump’s Expanding Crypto Kingdom Sparks Opposition: Is Stablecoin Legislation GENIUS Set to Be Approved?
The increasing connections of US President Donald Trump to the digital currency sector – alongside his family’s explicit financial stakes – have sparked a backlash in the Senate and initiated ethical investigations. What instigated this outcry? A $2 billion arrangement between a Trump-affiliated cryptocurrency enterprise and a state-supported Emirati investment fund? The unveiling of a stablecoin branded with Trump’s name? The creation of TRUMP and MELANIA meme tokens? Or perhaps a succession of high-profile fundraisers that muddied the distinction between public office and personal profit?
“This represents a sale of influence, a conflict of interest, an enormous degree of corruption unprecedented in our time,” stated Senator Jeff Merkley, a Democrat from Oregon, as reported in a NYT article on May 5, 2025. “And it must be stopped.”
Moreover, he took to X to voice his apprehensions regarding Trump’s crypto endeavors. “This is an alarming conflict of interest: a president capitalizing on access and enriching himself,” remarked Merkley. “Senator Elizabeth Warren and I are insisting on clarifications regarding the billion-dollar agreement involving a Trump-backed crypto firm and a foreign crypto asset company.”
.@SenWarren and I are insisting on clarifications regarding the billion-dollar agreement involving a Trump-backed crypto firm and a foreign digital currency company.
This represents an alarming conflict of interest: a president capitalizing on access and enriching himself.https://t.co/JodHJf2XBQ
— Senator Jeff Merkley (@SenJeffMerkley) May 5, 2025
In addition, Warren indicated that the Senate proposed legislation could facilitate the president and his family in profiting. Warren emphasized, “This is corruption, and no senator should endorse it.”
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$2 Billion Crypto Agreement Raises Concerns
Recently, Senate Democrats raised alarms about a significant deal: World Liberty Financial (WLF), a cryptocurrency firm closely associated with the Trump family, obtained a $2 billion investment from MGX, a fund endorsed by the Abu Dhabi government. Announced by Zach Witkoff – co-founder of WLF and son of Trump’s Middle East envoy – at a conference in Dubai, this arrangement will see MGX utilizing WLF’s USD1 stablecoin for transactions with Binance, the largest crypto asset exchange globally.
This controversy has disrupted the previously smooth progression of the GENIUS Act – a bipartisan initiative aimed at establishing a framework for stablecoins, cryptocurrencies tied to the US dollar. However, Democrats are now calling for extensive changes, voicing concerns that the legislation may disproportionately serve the Trump family’s digital currency interests.
“The legislation in its current form presents multiple issues requiring attention, such as stronger measures on anti-money laundering, foreign involvement, national protection, safeguarding the integrity of our financial systems, and holding accountable those who fail to comply with the act’s stipulations,” said a group of nine Democrats, including four who previously supported the legislation in the Senate Banking Committee. “As we are keen to collaborate with our colleagues to resolve these matters, we cannot endorse cloture if the bill remains in its present form.”
“The stablecoin legislation should receive bipartisan base level,” Claims White House
In the meantime, Anna Kelly, a spokesperson for the White House, stated that Trump has no conflict due to his assets being held in a trust managed by his children. “The stablecoin legislation should receive bipartisan price floor,” she asserted.
“President Trump aims to position America as the leading hub for crypto asset and transforming our digital financial framework,” she continued.
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Key Takeaways
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Despite the apprehensions concerning Trump’s involvement in the cryptocurrency sector, the Office of Government Ethics has limited authority to enforce divestment or take action against a sitting president, and with both Congressional chambers and the White House under Republican leadership, calls from Democrats for accountability may be overlooked.
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The dissent is not restricted to Democrats. Some Republican Senators and longtime proponents of digital currency have also voiced concern about the Trump family’s push to monetize the presidency via crypto asset.
The article Trump’s Growing Crypto Empire Triggers Backlash: Will Stablecoin Legislation GENIUS Be Passed? first appeared on 99Bitcoins.
