Democrats Target Trump Family’s Cryptocurrency Ventures Amid Regulatory Push
Date: May 6, 2025
By: Stephen Neukam
Source: Axios
In a significant move within the realm of cryptocurrency regulation, Senate Democrats are taking aim at the digital asset ventures associated with former President Donald Trump and his family. In an exclusive report by Axios, it has become evident that there is growing concern within the Democratic Party regarding the implications of Trump’s meme coin and other crypto assets as they push for legislative reform.
Legislative Proposals
Senator Jeff Merkley (D-Ore.) is set to introduce the End Crypto Corruption Act on Tuesday. This proposed legislation seeks to prohibit presidents, vice presidents, members of Congress, and their immediate families from issuing or endorsing digital assets, which include everything from meme coins to stablecoins. This initiative follows discussions among Senate Democrats, including Merkley and Senator Elizabeth Warren (D-Mass.), expressing concerns that the existing bipartisan GENIUS Act, which aims to regulate stablecoins, lacks sufficient safeguards against potential corruption.
In a private meeting, the lawmakers discussed how the GENIUS Act could inadvertently facilitate what they describe as "Trump’s crypto corruption." This concern stems from reports indicating that family members of the former president could reap significant profits from a planned $2 billion transaction involving stablecoins connected to an Abu Dhabi investment fund.
Internal Party Divisions
The situation has led to a noticeable rift within the Democratic Party. Following reports of possible conflicts of interest involving Trump’s ventures, Senate Democrats have withdrawn their support for the GENIUS Act in its current form. Progressives within the party have voiced the need for more stringent controls before backing the bill. In a letter to colleagues, Merkley emphasized the necessity of addressing potential corruption linked to the former administration’s crypto dealings.
“Democrats who both support and oppose the GENIUS Act agree that greenlighting Donald Trump’s corrupt stablecoin deals is wrong,” stated Warren. She underscored the importance of ensuring that the bill provides proper safeguards against corruption.
Financial Gains in Focus
The issue of financial gain is underscored by recent data from blockchain analytics firm Chainalysis, which indicates that issuers of the Official Trump meme coin have generated approximately $320 million from trading fees since its inception. This substantial amount has raised alarms regarding the ethical implications of such profits in the context of government officials’ familial involvement in digital currencies.
Moving Forward with Legislation
Senate Minority Leader Chuck Schumer (D-N.Y.) and Senator Kirsten Gillibrand (D-N.Y.) have thrown their support behind Merkley’s proposed legislation, signaling a united front within the party to combat perceived corruption associated with cryptocurrency in politics. Despite the internal dispute, Senate Republicans have expressed intentions to proceed with the GENIUS Act on the Senate floor as early as this week, aiming to establish a legislative framework for stablecoin regulation.
House of Representatives Actions
On the House side of Congress, a joint hearing scheduled by two committees to address digital assets was abruptly canceled when Democrats, led by Representative Maxine Waters (D-Calif.), withdrew unanimous consent. Waters later convened a separate event for Democrats to discuss the same regulatory issues that prompted Merkley’s legislation.
As the situation continues to evolve, the intersection of cryptocurrency, politics, and regulation remains a heated topic, with significant implications for both parties and the future of digital assets in America.
For more details on this ongoing story, stay tuned to Axios as developments unfold.
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