President Trump's intent to sign legislation helping the cryptocurrency industry could be thwarted by Senate Democrats because of his conflicts, The New York Times reports.
The so-called GENIUS Act would provide a federal framework to regulate stablecoins and help crypto grow in the U.S. But nine Democrats balked after The Times investigated a crypto business affiliated with Trump and his three sons and its $2 billion deal with a foreign government-backed fund. The business, World Liberty Financial, has begun offering stablecoins that could generate tens of millions of dollars a year in revenue for the Trumps and their business partners, The Times reports. One of their partners is Steve Witkoff, Trump's longtime friend and Middle East special envoy.
Republicans need the support of at least seven Democrats to move the bill forward. Beyond ethical concerns, Democrats want stronger provisions to stop money laundering and oversee foreign crypto firms, per The Times.
“It’s a selling of influence, a conflict of interest, just a massive form of corruption we haven’t witnessed,” Sen. Jeff Merkley, D-Oregon, told The Times. “And it needs to be ended.”
The bill is a test of crypto's new power in D.C. — the industry spent more than $130 million on electing pro-crypto congressional candidates in 2024, including Trump.
But even some Republicans have started questioning his coziness with crypto. On Monday, Trump promoted his $TRUMP meme coin and a contest associated with it that offers access to him.
The top holders of the highly volatile coin can attend an “intimate private dinner” with Trump at his golf club outside Washington, D.C., this month and tour the White House, according to the coin's website. The news prompted the coin to surge over 50% and boosted its total market value to $2.7 billion, NBC News reported. The Trump Organization and its affiliates control most of the token supply, according to the website.
“This is my president that we’re talking about, but I am willing to say that this gives me pause,” Sen. Cynthia Lummis, R-Wyoming, told NBC News.
Trump is also involved in overseeing the federal government's policy on digital assets. He has issued an executive order and created a task force to boost the industry, appointed a crypto advocate as head of the Securities and Exchange Commission, the regulatory agency that oversees crypto, and proposed a "strategic crypto reserve" for the government to purchase and hold digital tokens.
Additionally, Trump Media & Technology needs the Trump administration's approval to move forward with its plan to offer bitcoin exchange-traded funds as part of Truth.Fi, its new financial services firm.
Trump downplayed the conflicts during a Sunday interview with "Meet the Press," as well as the suggestion that he forego profits related to his crypto ventures.
“Should I contribute all of my real estate that I’ve owned for many years if it goes up a little bit because I’m president and doing a good job? I don’t think so,” Trump said.
