The Trump family’s increasing involvement in the cryptocurrency sector is raising concerns among lawmakers and complicating bipartisan efforts to regulate stablecoins in the United States. As reported by Axios, former President Donald Trump’s association with digital assets—including NFTs, Bitcoin mining, and a proposed stablecoin through World Liberty Financial—has introduced potential conflicts of interest that are hindering legislative progress.
Democratic legislators argue that the Trump family’s crypto activities could pose risks to taxpayers, especially if a Trump-affiliated stablecoin were to fail and require a bailout. Some Republicans share apprehensions about the perception of impropriety, with Senator Cynthia Lummis (R-Wyo.) noting that the family’s ventures are making it more challenging to advance related bills. Conversely, Senator Bernie Moreno (R-Ohio) supports the family’s involvement in the crypto space, criticizing perceived double standards regarding financial interests in politics.
Despite these political tensions, legislative efforts continue. The Senate Finance Committee has passed the GENIUS Act, aiming to establish regulations for stablecoins, while the House has advanced a similar bill, the STABLE Act. Both bills seek to provide a regulatory framework for stablecoin issuance and oversight, though there are currently no plans to reconcile the two versions.
In parallel developments, Circle’s euro-denominated stablecoin, EURC, has experienced growth, attributed to macroeconomic factors such as a weakening U.S. dollar and favorable EU regulations under the Markets in Crypto-Assets (MiCA) framework. Additionally, the Senate has confirmed Paul Atkins as the new chair of the Securities and Exchange Commission (SEC), signaling a continued Republican influence over crypto regulation.
Congressional hearings have highlighted the need for updated digital asset laws, with legal experts emphasizing that existing regulations do not adequately address the decentralized nature of cryptocurrencies. Discussions have focused on the necessity for regulatory clarity, particularly concerning secondary market trading and the classification of digital assets.
