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- Lawmakers accuse Trump of leveraging crypto assets for personal financial gain.
- GENIUS Act fails in Senate after bipartisan support collapses amid ethical concerns.
- Foreign ties to Trump-linked stablecoin raise alarm over national security risks.
The increased involvement of President Donald Trump in the cryptocurrency industry has caused intense political backlash in Washington. This backlash greatly contributed to the demise of the GENIUS Act, a bipartisan stablecoin regulation bill that had previously enjoyed a lot of backing.
Trump’s rallying of his followers to invest in the $TRUMP meme coin meant the Senate support for the bill evaporated with lightning speed. The coin value spiked through the roof after the news that top holders would be invited to dine with the president. Lawmakers became concerned with ethics after receiving a report stating that top holders could view a VIP White House tour.
Senator Richard Blumenthal referred to the arrangement as a “pay-for-play scheme,” emphasizing the blatant abuse of trust invoked. He noted that politicians should never impose decisions influenced by personal financial benefits from digital assets or marketing campaigns.
Senator Jeff Merkley seconded these concerns and denounced Trump’s continued involvement in crypto venture programs. He remarked that Trump supporters could access this by buying up cryptocurrencies that Trump promotes or even holds for himself. These activities, as Merkley suggests, undermine public confidence and pose a real challenge to U.S. national security.
Foreign Investment and Expanded Crypto Ties Add to Lawmaker Concerns
Trump’s influence goes further than meme coins; it extends to stablecoins controlled by World Liberty Financial. When Trump’s government supported an easy-on crypto regulation, this group introduced a stablecoin. An investigation showed that Abu Dhabi-based MGX invested 2 billion dollars in Binance on that stablecoin.
Members of Congress were becoming more nervous about the level of foreign involvement and what it could mean to formulate U.S. cryptocurrency legislation. In retaliation, some Democratic senators, most prominently Lisa Blunt Rochester, pulled out of their endorsement of the bill.
Proponents of the GENIUS Act pushed for obvious regulatory guidance while demanding more financial transparency. The measure was stopped as the Senate lacked enough senators for the move to proceed with only 48 senators.
The Senate’s most challenged stablecoin bill was pushed back because of Trump’s direct interest in the blockchain. Members of the legislation continue to voice concerns over possible financial conflicts guiding U.S. policy.
Also Read: BlackRock Pushes to Tokenize Wall Street as Crypto ETFs Attract Billions
