Trump’s Crypto Empire Sparks Outrage—Will His ’Stablecoin Genius’ Bill Survive the Backlash?

Former President Donald Trump’s expanding cryptocurrency ventures are drawing fierce criticism from regulators and rivals alike. His proposed ’Stablecoin Genius’ legislation—touted as a regulatory breakthrough—now faces an uphill battle in Congress.

Behind the hype: Trump’s portfolio includes stakes in multiple crypto projects, raising concerns about conflicts of interest. The bill promises clearer rules for stablecoins, but skeptics call it a Trojan horse for deregulation.

Wall Street’s take? ’Another masterclass in monetizing chaos,’ muttered one banking exec during a martini lunch. Meanwhile, crypto markets shrug—because when has political drama ever stopped a bull run?

$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. 

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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.