Trump’s Growing Crypto Empire Triggers Backlash: Will Stablecoin Legislation GENIUS Be Passed?

US President Donald Trump’s deepening ties to the crypto world – and his family’s direct financial interests- have triggered a senate backlash and ethics investigations. What caused this eruption? A $2 billion deal between a Trump affiliated crypto firm and a state-backed Emirati fund? The launch of a Trump-branded stablecoin? The TRUMP and MELANIA meme coins? Or a series of high-dollar fundraisers that blurred the lines between public office and private gain?

“It’s a selling of influence, a conflict of interest, just a massive form of corruption we haven’t witnessed,” said Senator Jeff Merkley, Democrat of Oregon, according to a 5 May 2025 NYT post. “And it needs to be ended.”

Furthermore, he took to X to express his concerns around Trump’s crypto moves. “This is a staggering conflict of interest: a president selling access and enriching himself,” said Merkley. “US Senator Elizabeth Warren and I are demanding answers on the billion-dollar deal between a Trump-backed crypto company and a foreign crypto firm.”

.@SenWarren and I are demanding answers on the billion-dollar deal between a Trump-backed crypto company and a foreign crypto firm.

This is a staggering conflict of interest: a president selling access and enriching himself.https://t.co/JodHJf2XBQ

— Senator Jeff Merkley (@SenJeffMerkley) May 5, 2025

Meanwhile, according to Warren, the Senate legislation will make it easier for the president and his family to line their own pockets.” Warren said, “This is corruption and no senator should support it.”

DISCOVER: 20+ Next Crypto to Explode in 2025

$2 Billion Crypto Deal Raises Red Flags

Last week, Senate Democrats sounded the alarm over a blockbuster agreement: World Liberty Financial (WLF), a crypto company closely linked to the Trump family, secured a $2 billion deposit from MGX, an investment fund backed by the Abu Dhabi government. The deal, announced at a Dubai conference by Zach Witkoff-co-founder of WLF and son of Trump’s Middle East envoy-will see MGX use WLF’s USD1 stablecoin to transact with Binance, the world’s largest crypto exchange.

The controversy has upended the once-smooth path of the GENIUS Act – a bipartisan bill designed to create a regulatory framework for stablecoins-cryptocurrencies pegged to the US dollar. However, Democrats are now demanding sweeping changes, citing concerns that the legislation would disproportionately benefit the Trump family’s crypto ventures.

“The bill as it currently stands still has numerous issues that must be addressed, including adding stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability for those who don’t meet the act’s requirements,” said a group of nine Democrats, including four who voted to advance the legislation out of the Senate Banking Committee. “While we are eager to continue working with our colleagues to address these issues, we would be unable to vote for cloture should the current version of the bill come to the floor.”

“The stablecoin legislation should be passed on a bipartisan basis,” Says White House

Meanwhile, Anna Kelly, a White House spokeswoman, said that Trump had no conflict because his assets were in a trust managed by his children. “The stablecoin legislation should be passed on a bipartisan basis,” she said.

“President Trump is dedicated to making America the crypto capital of the world and revolutionizing our digital financial technology,” she added.

DISCOVER: 11 Best Crypto Presales to Invest in May 2025 – Top Token Presale

Key Takeaways

Despite the concerns around Trump’s crypto moves, the Office of Government Ethics has limited power to enforce divestment or prosecute a sitting president, and with both chambers of Congress and the White House under Republican control, Democrats’ calls for accountability may go unheeded.

The backlash is not limited to Democrats. Even some Senate Republicans and longtime crypto advocates have expressed unease about the Trump family’s aggressive monetization of the presidency through crypto.