Bipartisan support for crypto regulation stalls amid ethics probes and allegations of presidential profiteering
As President Trump’s crypto ventures spark bipartisan concern, Democrats push for ethics probes and regulatory safeguards, halting progress on the GENIUS Act and reigniting debate over political influence in digital finance.
Growing concerns over President Donald Trump’s entanglements in the cryptocurrency sector have upended bipartisan efforts to regulate digital assets, triggering ethics investigations and legislative delays in Washington.
Democratic lawmakers are voicing alarm over what they describe as a troubling fusion of Trump’s political power and private financial gain, particularly involving his family-linked crypto ventures. Since January, entities connected to the former president have reportedly raked in over $300 million in trading fees through sales of his meme coin and related digital currencies.
In late April, a Trump-affiliated company spurred controversy by promoting the $TRUMP memecoin with a chance to win an “intimate private dinner” with the president at his Virginia golf club. The coin’s value surged by up to 80% following the announcement.
More recently, World Liberty Financial, a crypto firm tied to the Trump family, revealed that one of its digital coins is now part of a $2 billion deal with Binance, brokered through an Abu Dhabi state-backed investment fund. The transaction has raised fresh concerns about foreign influence on U.S. political figures.
These revelations come as the Trump administration continues to push policies favouring cryptocurrency expansion, including establishing a “strategic bitcoin reserve” and reversing regulatory crackdowns initiated during the Biden era.
But those policies now face political headwinds. On May 3, nine Senate Democrats abruptly withdrew support for the proposed GENIUS Act—a stablecoin regulation bill—citing insufficient safeguards against money laundering and foreign interference.
Passage of the bill would require at least seven Democratic votes to clear the Senate’s 60-vote threshold. While Senate Democratic Leader Chuck Schumer remained noncommittal, saying only that talks were ongoing, Republican Majority Leader John Thune pledged to proceed with a vote regardless.
The backlash grew sharper on May 6 when Rep. Maxine Waters, D-California, stormed out of a House committee hearing, accusing Trump of exploiting cryptocurrency “because of the corruption of the president of the United States and his ownership of crypto and his oversight of all the agencies.”
Sen. Richard Blumenthal, D-Connecticut, initiated a formal investigation into Trump’s crypto dealings and demanded disclosures from World Liberty Financial and Fight Fight Fight—the firm behind the $TRUMP coin. “Donald Trump is selling cryptocurrency like snake oil in the Wild West, and he’s put a for sale sign on the White House for his meme coin,” Blumenthal said. “People in America deserve to know how he is potentially under the influence of foreign governments and investors who are buying his crypto assets.”
Sen. Adam Schiff, D-California, called on the Office of Government Ethics to examine potential conflicts of interest. Meanwhile, Senators Jeff Merkley, D-Oregon, and Schumer are introducing legislation that would ban top federal officials and their families from creating cryptocurrency assets. “This is not a situation where somebody is passing a few thousand dollars under the table as a bribe,” Merkley said. “This is a situation where – on the table, in full view of the public – the president is selling access to his office.”
Despite the Democratic minority status in both chambers, the filibuster provides them leverage to influence legislation’s fate. Yet even some Republicans are voicing hesitation. Senators Josh Hawley, R-Missouri, John Kennedy, R-Louisiana, and Rand Paul, R-Kentucky, expressed uncertainty over supporting the GENIUS Act.
Still, Sen. Bill Hagerty, R-Tennessee—the bill’s chief architect—remains optimistic. “We’re very close to having everything concluded and I expect it to be concluded by the end of the week,” he said.
Responding to the mounting scrutiny, White House spokesperson Anna Kelly defended the president’s position. “Trump is dedicated to making America the crypto capital of the world. His assets are in a trust managed by his children, and there are no conflicts of interest,” she said.
With ethics investigations mounting and bipartisan alliances fracturing, the future of crypto regulation—and the role of the presidency in it—hangs in the balance.
