His memecoin profits and potential conflict of interest have caused gridlock in Congress, delaying key legislation.
Discussions about the conflict of interest surrounding US President Donald Trump’s crypto ventures are delaying crypto legislation. Democrats are blocking the stablecoin bill, the GENIUS Act, to prevent Trump from profiting off crypto.
Ryan Gilbert, founder of Launchpad Capital, said, ‘It’s unfortunate that personal business is getting in the way of good policy.’
The GENIUS Act, which aims to regulate US payment stablecoins, was expected to pass easily. However, it failed in the Senate on 6 May, with a 48-49 vote. Trump’s crypto activities have stalled discussions on the broader market structure bill.
The issue began when Trump launched the $TRUMP memecoin before his inauguration. The coin’s price surged, benefiting Trump-linked companies, but later collapsed, leaving small investors with significant losses.
In March, Trump’s family reportedly discussed buying a stake in the US arm of Binance, which faced anti-money laundering legal issues.
Further concerns arose when Trump-linked World Liberty Financial (WLF) planned to launch the USD1 stablecoin, backed by investment giant MGX. The move has sparked debates about Trump’s use of crypto ventures to enrich himself.
Some Democratic Senators have introduced the End Crypto Corruption Act. It would stop Congress members and their families from endorsing crypto. Despite the concerns, negotiations around the GENIUS Act continue, but its timeline remains uncertain.
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