In this article we get deeper to understand how Trump’s Crypto Ties Slow Down U.S. Crypto Policy Progress
Concerns about conflicts of interest involving U.S. President Donald Trump are stalling progress on important cryptocurrency legislation, including new stablecoin regulations.
Over the past week, discussions about Trump’s personal involvement in cryptocurrency ventures have intensified, raising ethical questions and delaying new policy decisions in Washington.
Lawmakers from both parties had hoped to push forward the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bill designed to set clear rules for stablecoins used in digital payments.
However, those efforts have been disrupted by growing concerns over Trump’s private crypto dealings.
Why Crypto Policy Is Being Delayed is Trump the problem?
Financial experts and politicians have spoken out about how personal business interests are interfering with public policy.
Ryan Gilbert, founder of fintech investment firm Launchpad Capital, told CNBC:
“It’s unfortunate that personal business is getting in the way of good policy. I would hope that everybody in the administration, including the president, gets out of the way of good policy.”
The GENIUS Act was expected to be one of the easiest crypto bills to pass, according to Katrina Paglia, chief legal officer at venture capital firm Pantera Capital.
But last week, the bill narrowly failed in the Senate by a 48-49 vote.
Adding to the tension, discussions about a separate U.S. crypto market structure bill — meant to clarify how digital assets are regulated by agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) were also blocked amid conflict of interest allegations.
A Timeline of the Controversy
Concerns about Trump’s crypto activities began shortly before his inauguration when he launched the official $TRUMP memecoin.
The token’s price surged to an all-time high of $75 on January 19 but quickly fell after Trump took office, causing investors to lose over $2 billion.
Meanwhile, Trump-affiliated companies controlling 80% of the memecoin supply reportedly earned around $100 million in trading fees by January 30.
In March, reports emerged of the Trump family negotiating a stake in Binance’s U.S. operations, just months after Binance admitted to violating anti-money laundering rules.
Around the same time, a crypto firm linked to the Trump family, World Liberty Financial (WLF), announced plans to issue its own stablecoin, USD1.
A deal involving Abu Dhabi investment firm MGX and Binance was announced on March 12.
By May 1, WLF confirmed USD1 would be used for the transaction.
MGX is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser.
In late April, Trump invited the top 220 holders of his memecoin to a private gala on May 22. Democratic Senator Jon Ossoff called the event an “impeachable offense.”
More controversy followed when reports claimed insiders made \$100 million by purchasing Melania Trump’s memecoin shortly before its public release.
Democrats Fight Back Against ‘Corruption’
What was expected to be a smooth legislative process quickly turned into political gridlock.
Last weekend, nine Senate Democrats, including four who had previously backed the GENIUS Act, withdrew their support unless the bill was revised to address national security and money laundering risks.
On May 6, Congresswoman Maxine Waters used time scheduled for a crypto market hearing to accuse Trump of profiting from cryptocurrency at the expense of U.S. citizens.
She claimed he made at least $350 million from his memecoin ventures.
A senior Treasury Department advisor, Chastity Murphy, called Trump’s crypto empire a tool for “influence peddling, bribery, and regulatory capture.” Representative Stephen Lynch went further, estimating that Trump has earned about $2.9 billion from cryptocurrency activities roughly 40% of his total wealth.
On May 7, Senator Mark Kelly introduced the End Crypto Corruption Act, aimed at banning members of Congress and their families from creating or endorsing cryptocurrencies. He stated:
“Trump is cashing in on his presidency and making millions from his own crypto coins—this is corruption in broad daylight.”
The following day, several Senate Democrats urged U.S. Treasury Secretary Scott Bessent and Attorney General Pam Bondi to investigate Trump’s crypto ties.
Meanwhile, former Binance CEO Changpeng Zhao (CZ), recently released from prison, reportedly requested a pardon from Trump.
What Happens Next?
Despite the controversy, bipartisan talks have resumed following the GENIUS Act’s failed vote.
Lawmakers are expected to revisit the legislation as soon as next week. Most anticipate that the bill will eventually pass, though the timeline remains uncertain.
Senator Jeff Merkley summed up the frustration
“Currently, people who wish to cultivate influence with the president can enrich him personally by buying cryptocurrency he owns or controls…This is a profoundly corrupt scheme.”
As the U.S. crypto policy debate continues, the focus remains on whether personal interests will be allowed to shape public policy.
Trump’s Crypto Ties becoming a problem to the US finance?
