Trump’s crypto agenda threatened by his pursuits of personal profits

President Donald Trump is in his own way when it comes to passing cryptographic legislation.

Legislators rejected this week the Genius Law, a bill aimed at establishing federal rules for Stablecoins, due in part to the concerns that President Trump’s personal cryptocurrency companies have created a conflict of unprecedented interests.

“Currently, people who want to grow influence with the president can personally buy it by buying cryptocurrencies that he possesses or controls,” Senator Jeff Merkley, D-Or, said in a statement to CNBC explaining his opposition to the bill. “This is a deeply corrupt scheme. Endangers our national security and erodes public confidence in government.”

Stablecoins are digital currencies that are linked to the value of other assets, such as the US dollar.

Obtaining something in Congress is a strong uphill battle for Republicans, given its most thin in the Chamber, filibuster -proof requirements in the Senate and the increasingly unified posture of the Democrats against the agenda of President Trump. But sufficient Democrats seemed to be on board with a Stablecoin law to achieve a strange bipartisan victory for the president.

That is until $ Trump got in.

The president’s meme currency, which launched just before the inauguration in January, has added billions of dollars of paper for the coffers. Its value shot last month after the project made a dinner with the headlines of $ promotion with the president and a “VIP Tour of the White House”. Senator Richard Blumenthal, D-Conn., Called him a “game payment scheme.” The first lady Melania Trump also has a coin.

The genius bill could not advance in the Senate on Thursday. I needed 60 votes to move to the Senate floor for the final passage. The final account was 48 in favor and 49 against. Three senators did not vote.

At the beginning of the week, the Senate Democrats presented the “Cryptography Corruption Law”, headed by Merkley and the minority leader Chuck Schumer of New York, aimed at prosthesis of elected officials and the digital association of the executive branch of SIOR and its family broadcast and its issuance and its issuance and its issuance and its issuance and its issuance and its issuance and its issuance and its issuance and its issuance and its issuance

But the key defections to the legislation of Stablecoin arrived last weekend, when a group of nine Senate Democrats, four of whom had previously voted for the bill in the committee, said they would not support him and asked for stress to the addresses to go to security. “

Senator Lisa Blunt Rochester of Delaware was one of the four. He directly pointed to Trump’s financial tangles.

“I am also worried about the conflicts of financial interests and self -collons carried out by the Trump family,” he wrote in a statement on Thursday.

It is not just about the $ Trump and $ Melania meme coins. There is also the Trump Family Crypto Venture World Liberty Financial, which was established last year and launched a Stablecoin as well as the administration pressed for the most loose regulations in digital assets.

The reports have indicated that MGX, based in Abu Dhabi, is using Trump Stablecoin for an investment of $ 2 billion in Crypto Exchange Binance, creating another possible conflict or interest for a acting president.

For some investors and entrepreneurs in the cryptographic industry, the search for the president of personal profits is creating a great impediment to the long -awaited advances. After years of way of duration of the Biden administration, the cryptographic lobby became a powerful force to finance Trump’s 2024 campaign and in the candidates for Congress friendly with the industry successfully for Congress.

“It is unfortunate that personal businesses get in the way of good policy,” said Ryan Gilbert, founder of Fintech Venture Fund Launchpad capital. “I hope everyone in the administration, including the president, will get out of the way of good policy.”

The White House did not respond to a request for comments. At a press conference on Friday, the White House Press Secretary Karoline Leavitt said when asked about the meme coin dinner, that “the president is respecting all the laws of conflict of interest.”

“The president is a successful businessman, and I think he is one of the many reasons why people re -elected him to this office,” Leavitt said.

Several main democrats, including Senator Elizabeth Warren by Massachusetts and Kirsten Gillibrand in New York have joined the critics parade, pointing to President Trump’s personal activities. Gillibrand helped introduce Genius law earlier this year, but this week he said that there are “a series of pending problems that should be directed before the bill could approve the complete Senate.”

“I think it is essential for the future of the US economy and for everyday Americans that we promulgate strict regulations and consumer protections where they do not currently exist,” Gillibrand said in a statement. “I’m still extremely safe and I hope we can finish the job very soon.”

Senator Blumenthal asked Trump linked to coins, demanding financial records of World Liberty Financial and criticizing the President for “the attempt to use the White House to organize competitions to provide the $ Trump value.”

Senator Ruben Gallego, D-Arsona, had supported Genius law, but said he could not advance this week after the Republicans refused to provide more to negotiate.

“Without any more time to finish the bill, there was no true bipartisan path,” Hey wrote in X.

Gilbert in Launchpad said Genius law is just the first piece. In more general terms, the president’s conflicts could have an impact on the hopes of other legislative achievements and deregulation efforts, as well as the reputation of the crypto of the US industry on the world scenario.

“We will be the world’s stocks for this particular reason, and will have continuous investment and innovation,” Gilbert said. “There was hope during the last six months that we could lead in the United States, and that the investment should in cryptographic-relac businesses, and then it will be simpler and more feasible again, for all colleagues to take an advantage and invest in cryptographic assets.”

However, he said: “If the genius law does not happen, we return to the starting point.”

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