Mounting Concerns Halt US Senate Progress On Crypto Legislation
By: Isha Das
Amid growing concerns surrounding potential ethics violations linked to former President Donald Trump, progress on several crypto-related bills within the US Senate has come to a halt. These bills, including key legislation surrounding stablecoins, are currently stalled due to ethical considerations that have thrown a spotlight on the Trump family's financial entanglements with the United Arab Emirates-backed MGX, Binance, and World Liberty Financial (WLFI).
Back in May, Senators Elizabeth Warren and Jeff Merkley raised alarms in a letter to the Office of Government Ethics, urging an investigation into a controversial $2 billion stablecoin deal tied to Trump. The senators are concerned that this deal may contravene key legal frameworks such as the Emoluments Clause of the US Constitution as well as federal bribery statutes, hence jeopardizing the advancement of crypto regulations.
Subsequent to the ethics probe call, Democrats have distanced themselves from the Senate stablecoin bill. Earlier in the year, the GENIUS Act, aimed at structuring regulations for stablecoins, crossed an initial legislative hurdle with backing from certain Democrats alongside Republicans. However, given the recent developments and the association of the Trump family through WLFI making lucrative deals, Congress members have withdrawn their support, despite the bill including new anti-money laundering and terrorism financing controls.
The recent digital assets hearing intended to deliberate on crypto legislation saw tensions rise, culminating in a walkout by House Democrats. This walkout showcased escalating skepticism and discord placed on bipartisanship efforts due to 'Trump's crypto corruption'. Democrat disapproval has largely stemmed from perceived ethical breaches in Trump's continued involvement in high-profile crypto transactions, which have raised red flags about potential conflicts of interest and undermined efforts to establish a regulatory framework for digital assets in the United States.
