Congressional Uproar Over Trump’s Billion-Dollar Crypto Deal
Date: May 7, 2025
By: Zachary Basu, Axios
A significant uproar has emerged within Congress following revelations of a $2 billion cryptocurrency deal linked to former President Donald Trump and a foreign government. This development poses a serious threat to bipartisan efforts within Congress to establish a regulatory framework for stablecoins, a measure that has been in the works for several months.
The Controversial Deal
The focus of the controversy is the Trump family’s venture into cryptocurrency, which has raised alarms amongst Democrats, who argue that these lucrative projects represent potential conflicts of interest and allegations of corruption. They contend that the president’s business dealings are blurring the lines between personal profit and public service, especially as numerous new business ventures from the Trump family come to light.
This situation could undermine the ongoing bipartisan stablecoin legislation, which is crucial for providing clarity and legitimacy to the crypto industry in the United States—a sector that has actively lobbied for such regulatory guidance.
Legislative Response
In response to the escalating concerns, Senate Democrats unveiled a new proposal on Tuesday aimed at prohibiting presidents, lawmakers, and their families from participating in the issuance, endorsement, or sponsorship of cryptocurrency assets. The timing of this bill coincides with a growing discontent among Senate Democrats regarding the GENIUS Act, landmark bipartisan legislation intended to create an unprecedented regulatory framework for stablecoins.
Senator Chris Murphy (D-Conn.) and Representative Sam Liccardo (D-Calif.) spearheaded the introduction of legislation specifically targeting Trump’s billion-dollar “meme coin,” which Senator Murphy labeled as "the single most corrupt act ever committed by a president." Demonstrating their frustration, Representative Maxine Waters (D-Calif.) led a Democratic walkout during a joint committee hearing on cryptocurrency regulation, creating chaos in a bid to bring further attention to the allegations of corruption tied to Trump’s business dealings.
Accusations of Corruption
Democrats have long voiced accusations against Trump and his family concerning potential profits made during his presidency. However, the latest alleged cryptocurrency projects appear to exacerbate these claims. Evidence of impropriety includes a promotional offer from the official website of Trump’s meme coin, which invited top investors to an exclusive dinner with the president and a VIP White House tour for the top holders.
Furthermore, World Liberty Financial, the Trump family’s crypto venture, recently announced a collaboration with an Emirati state-backed fund to facilitate a $2 billion investment in the crypto exchange Binance using their new stablecoin.
Reactions from Trump and His Administration
In the wake of these developments, Donald Trump has refuted any claims of wrongdoing. In an interview with NBC’s "Meet the Press," he stated that he began his crypto ventures "long before the election," indicating no conflict of interest. White House spokeswoman Anna Kelly echoed this sentiment, emphasizing that Trump’s assets are managed by his children and that he believes bipartisan support for stablecoin legislation is paramount for advancing America’s position in the global cryptocurrency landscape.
Growing Tensions in Congress
The response to the foreign deal has intensified calls for investigations, with Democrats urging the Office of Government Ethics to review the situation for potential conflicts of interest that could pose a threat to national security. Last week, Senator Chuck Schumer (D-N.Y.) advised Democratic caucus members to withhold support for the GENIUS Act to leverage necessary changes in the proposed legislation.
Further heightening the debate, Senator Elizabeth Warren (D-Mass.) expressed that the current stablecoin bill could potentially enable the president and his family to benefit financially, labeling these actions as "corruption" and calling for responsible governance.
Conclusion
While the cryptocurrency industry has welcomed Trump’s support as a possible turning point following years of perceived hostility from the current administration, the controversies surrounding the Trump family’s aggressive business tactics may ultimately jeopardize the legal clarity and legitimacy the industry desperately seeks.
As the situation unfolds, all eyes remain on Congress as it grapples with the implications of these developments for the crypto market and the potential for legislative fallout impacting the future of cryptocurrency regulation in the United States.
Stay informed with the latest developments in the crypto world by subscribing to Axios Crypto for insightful updates.
Share this article:
