Trump’s Crypto Deal Faces Democratic Backlash Over Corruption Concerns

WASHINGTON, D.C. — President Donald Trump’s cryptocurrency ventures are drawing increasing scrutiny from Democratic lawmakers. This follows a significant announcement last week about a $2 billion investment from an Emirati state-owned firm into the crypto exchange Binance, linked to Trump’s new stablecoin project called USD1.

The investment has raised alarms due to concerns of corruption and conflicts of interest involving Trump and his family. Some Democrats, including Senators Mark Warner, Andy Kim, and Ruben Gallego, had previously supported crypto legislation, but recent developments have prompted them to withdraw their backing for a crucial bill regulating stablecoins.

Days after Trump’s announcement, the three senators, alongside others, expressed worries about potential implications related to money laundering and national security. They specifically raised issues about the association between Trump and Binance, a company recently charged with multiple regulatory violations.

Senator Elizabeth Warren also voiced strong objections, labeling the Genius Act, which facilitates the legalization of Trump’s stablecoin, as a pathway to corruption. “We need to make sure we fix this in the bill, or else the Genius Act will simply facilitate Trump’s crypto corruption,” she stated on Monday.

Simultaneously, a House Financial Services committee meeting revolved around these concerns. Democrats announced the upcoming introduction of the End Crypto Corruption Act, aimed at prohibiting the president and members of Congress from profiting off cryptocurrencies.

As part of his ongoing promotion of the crypto space, Trump recently launched a contest for top investors in his $TRUMP meme coin, which has set the stage for further scrutiny. The controversial digital asset has attracted attention despite a significant loss in value since its inception.

Trump advocates for the crypto industry, stating, “I think crypto’s important because if we don’t do it, China’s going to.” However, if legislative protections for crypto continue to falter, his increasing involvement may undermine the crypto industry’s future in Congress.