Congress erupts over Trump's billion-dollar crypto deal
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A $2 billion crypto deal involving President Trump's family and a foreign government is threatening to derail bipartisan stablecoin legislation that Congress has been working on for months.
Why it matters: Democrats see the potential for gob-smacking corruption in Trump's lucrative crypto projects, which they consider to be the clearest conflicts of interest in a sea of new business ventures launched by the president and his inner circle.
- The Trump family's crypto dealings could now jeopardize legislation that the crypto industry has aggressively lobbied for as a way to gain legitimacy and legal clarity in the U.S.
What's happening: Senate Democrats unveiled a sweeping new proposal Tuesday to ban presidents, lawmakers and their families from issuing, endorsing or sponsoring crypto assets, Axios' Stephen Neukam scooped.
- The new bill comes days after Senate Democrats suddenly voiced opposition to the GENIUS Act — landmark bipartisan legislation that would create the first-ever regulatory framework for stablecoins.
- Sen. Chris Murphy (D-Conn.) and Rep. Sam Liccardo (D-Calif.) introduced bills targeting Trump's multibillion-dollar meme coin, which Murphy called "the single most corrupt act ever committed by a president."
Over in the House, Rep. Maxine Waters (D-Calif.) led a Democratic walkout of a joint hearing on crypto regulation, plunging the session into chaos in hopes of drawing new attention to Trump's alleged "corruption."
Between the lines: Democrats have long accused Trump and his family of profiting from the presidency. But on two particularly brazen crypto projects, Trumpworld may have flown too close to the sun.
- The official website for Trump's meme coin invited its top 220 investors to an "intimate private dinner" with the president later this month, with a "VIP White House Tour" offered to the top 25 holders. References to the White House were later scrubbed from the website.
- World Liberty Financial, the Trump family's crypto venture, announced that an Emirati state-backed venture fund would use World Liberty's new stablecoin to complete a $2 billion investment in crypto exchange Binance.
What they're saying: Trump has denied profiting from the presidency, telling NBC's "Meet the Press" that he started his crypto venture "long before the election."
- "I haven't even looked," Trump claimed.
- "Stablecoin legislation should be passed on a bipartisan basis. President Trump is dedicated to making America the crypto capital of the world and revolutionizing our digital financial technology. His assets are in a trust managed by his children, and there are no conflicts of interest," White House spokeswoman Anna Kelly told Axios.
Zoom out: Democrats erupted over news of the foreign deal, demanding an investigation by the Office of Government Ethics and warning of a "quid pro quo that could endanger national security."
- At a closed-door meeting last week, Senate Democratic Leader Chuck Schumer (D-N.Y.) told his caucus to withhold support for the GENIUS Act so Democrats could force changes to the legislation.
- Sen. Elizabeth Warren (D-Mass.) argued the stablecoin bill "will make it easier for the president and his family to line their own pockets," warning: "This is corruption and no senator should support it."
The bottom line: The crypto world was thrilled to see Trump take up the mantle of advocate-in-chief, especially after years of perceived hostility from the Biden administration.
- But the Trump family's aggressive business tactics may end up costing the industry the very legitimacy it's been chasing.
