Controversies over President Donald Trump’s crypto-related ventures and alleged conflicts of interest are impeding progress on critical US crypto legislation. Last week, personal enrichment concerns linked to Trump and his family became central to debates in Congress, particularly around the GENIUS Act—a bipartisan-backed bill aimed at establishing a regulatory framework for US stablecoins. The bill narrowly failed in the Senate by a 48-49 vote following objections over perceived national security issues and Trump’s disproportionate crypto profits, with Democrats requesting time for further review and pushing for provisions to prevent sitting presidents from profiting via digital assets.
Parallel scrutiny surrounds the $TRUMP memecoin, which saw dramatic highs ahead of Trump’s inauguration before plummeting, causing steep losses for small investors but significant gains for entities linked to Trump. Reports claim that insiders and the Trump family reaped hundreds of millions through trading fees, control over the memecoin supply, and strategic DeFi deals, generating accusations of influence peddling and bribery. Investigations are ongoing into Trump’s alleged ties to crypto exchanges and stablecoin issuers, including an attempted stake in Binance US and the launch of the USD1 stablecoin.
Attempts to pass comprehensive crypto regulation have exposed widening partisan rifts, with Democrats stressing consumer protection, anti-corruption, and national security, while some Republicans view the delay as politicized obstruction. Both sides continue negotiations, but the timeline for advancing the GENIUS Act or broader crypto regulation remains uncertain as conflict-of-interest allegations and policy disagreements persist.