A political firestorm has erupted in Washington as Democrats accuse President Donald Trump and his family of unprecedented corruption over crypto ventures potentially worth billions.
The controversy centers on two high-profile crypto projects: a meme coin that has reportedly generated $320 million in trading fees and a $2 billion stablecoin deal involving an Emirati state-backed venture fund and crypto exchange Binance.
Capitol Hill’s Crypto Meltdown
The scandal reached boiling point Tuesday when Senate Democrats unveiled sweeping legislation to ban presidents, lawmakers, and their families from issuing or endorsing crypto assets.
Simultaneously, Representative Maxine Waters led a dramatic Democratic walkout during a joint hearing on cryptocurrency regulation, plunging the session into chaos.
“This is the single most corrupt act ever committed by a president,” declared Senator Chris Murphy (D-Conn.), who introduced legislation targeting Trump’s meme coin along with Representative Sam Liccardo (D-Calif.).
The controversy has thrown months of bipartisan work on cryptocurrency regulation into jeopardy. Senate Democrats have abruptly withdrawn support for the GENIUS Act—landmark legislation that would create the first regulatory framework for stablecoins—after details emerged about the Trump family’s crypto ventures. Senate Democratic Leader Chuck Schumer instructed his caucus to withhold support to force changes to the legislation.
Democratic concerns intensified after reports that Trump’s official meme coin invited its top 220 investors to an “intimate private dinner” with the president, with a “VIP White House Tour” offered to the top 25 holders.
Billion-Dollar Deal Faces Backlash
The altcoin industry, which had celebrated Trump’s embrace after years of perceived hostility from the Biden administration, now faces sharp criticism. The very legitimacy the industry sought through legislation is now threatened by the Trump family’s aggressive business ventures.
“Stablecoin legislation should be passed on a bipartisan basis,” White House spokeswoman Anna Kelly told Axios.
“President Trump is dedicated to making America the crypto capital of the world and revolutionizing our digital financial technology. His assets are in a trust managed by his children, and there are no conflicts of interest.”
The proposed “End Crypto Corruption Act,” sponsored by Senators Jeff Merkley (D-Ore.), Elizabeth Warren (D-Mass.), Chuck Schumer (D-N.Y.), and Kirsten Gillibrand (D-N.Y.), would specifically prohibit the president, vice president, members of Congress, and their immediate families from issuing digital assets like meme coins and stablecoins.
Senator Warren argued that the stablecoin bill “will make it easier for the president and his family to line their own pockets,” warning: “This is corruption and no senator should support it.”
Despite the Democratic uproar, Senate Republican leadership has indicated they still plan to move ahead with the GENIUS Act on the Senate floor as soon as this week, setting the stage for a partisan showdown over cryptocurrency regulation that could determine the future of digital assets in America.
