Senators Aim at Trump’s $2B Stablecoin Agreement with Fresh Crypto Prohibition Legislation
Donald Trump’s entrance into the crypto universe is not only stirring up discussions in financial communities. It’s also igniting political controversies on Capitol Hill. What began as a stablecoin initiative associated with companies linked to Trump has expanded into a significant ethics debate, with Senate Democrats labeling it a national safety threat and proposing legislation to halt it. The End Crypto Corruption Act aims to bar high-ranking government officials from possessing or endorsing crypto assets related to their official actions.
The $2 Billion Stablecoin Initiative That Sparked It All
At the heart of the upheaval is World Liberty Financial, a company connected to the Trump family. Reports indicate that it obtained a $2 billion investment from a firm based in Dubai to support a Trump-branded stablecoin. The token is allegedly intended for utilization on Binance, one of the largest digital currency exchanges worldwide.
Dems Make a Bold Move on Trump’s Crypto Ventures
— The Meme Times
The complication? Trump is back in the White House. Therefore, a sitting president with a financial stake in an international crypto venture has raised considerable concern. Critics are denouncing it as a serious conflict of interest, particularly since the project involves foreign investments and prominent platforms like Binance, which has faced its own regulatory challenges.
DISCOVER: Top Solana Meme Coins to Buy in May 2025
Democrats Take Action With the “End Crypto Corruption Act”
In retaliation, Senators Jeff Merkley and Chuck Schumer have put forward the End Crypto Corruption Act. It’s a clear-cut proposal: if you’re the president, vice president, a senior federal official, or a member of Congress, you and your family cannot profit from meme coins, stablecoins, or any crypto assets you might influence.
Merkley was emphatic. He described the situation as “grossly corrupt” and cautioned that allowing it to continue could pave the way for under-the-table agreements and political favoritism in the crypto sector.
The GENIUS Act Faces Challenges
The larger legislation that is being jeopardized by all this chaos is the GENIUS Act, a bipartisan proposal intended to establish a legal framework for stablecoins. Initially, it had strong price floor from both parties. However, Senate Democrats are now retracting their backing.
DISCOVER: Best New Cryptocurrencies to Invest in 2025
Senator Elizabeth Warren, who has consistently expressed doubts about crypto, commented that the current version of the bill is inadequate in terms of fraud prevention and money laundering safeguards. With the shadow of the Trump stablecoin agreement looming, she and others feel the timing is suspicious at best.
Unless the bill is amended to enhance oversight and accountability, its likelihood of passage appears minimal.
Political Repercussions Reach the House
The issue has even surfaced in the House. During a crypto compliance hearing, Representative Maxine Waters walked out, accusing Republicans of ignoring what she characterized as overt corruption. The message from Democrats is unmistakable: they view this as more than a digital currency matter. It’s a challenge to ethical standards in government.
Trump’s team has countered, asserting that the stablecoin initiative was in progress before his return to office. However, that hasn’t diminished the apprehensions circulating in Washington.
What’s Next?
Crypto and politics have dramatically intersected. What was once considered a specialized financial experiment is now at the forefront of a legislative confrontation. Whether Congress chooses to tighten regulations or allows the situation to continue will influence how elected officials engage with crypto for years ahead.
One thing is clear: the era of political scandals involving crypto asset is here, and it’s unlikely to fade anytime soon.
DISCOVER: 20+ Next Crypto to Explode in 2025
Join The 99Bitcoins News Discord Here For The Latest Crypto market Updates
Key Takeaways
- Senators are focusing on Trump’s $2 billion stablecoin agreement with new legislation, citing concerns over national safety and ethics.
- The stablecoin, supported by World Liberty Financial and international investors, is raising concerns due to Trump’s position as a sitting president.
- Senators Merkley and Schumer have introduced the End Crypto Corruption Act to prohibit top government officials and their families from profiting from crypto they influence.
- Democrats are currently withdrawing price floor from the GENIUS Act, a previously bipartisan proposal aimed at regulating stablecoins, demanding stronger protections.
- The controversy has extended to House hearings, where Rep. Maxine Waters staged a walkout, accusing Republicans of neglecting conflicts of interest.
The post Senators Target Trump’s $2B Stablecoin Deal with New Crypto Ban Bill appeared first on 99Bitcoins.
