Trump’s Crypto Ventures Under Scrutiny for Conflict of Interest

Democrats walked out of joint hearings on digital assets in the US Congress, accusing Republicans of ignoring Donald Trump’s conflict of interest.

The reason was the president’s connections to the crypto industry, including the issuance of the TRUMP meme coin and lobbying projects through his family.

Democrats vs. Republicans

Maxine Waters, Deputy Chair of the House Financial Services Committee, stated that Republicans are “legitimizing corruption” by refusing to discuss Trump’s influence on regulation.

In response, Republicans, using a procedural loophole, converted the hearing into a roundtable. Brian Steil, Chair of the Digital Assets Subcommittee, stated that the discussion would continue without the Democrats.

Republican French Hill urged colleagues to focus on creating a regulatory framework for the crypto market but did not address the allegations about Trump’s industry ties. He claimed that Democrats “politicized” the process.

Earlier, Democrats stated they would not support the stablecoin bill (GENIUS Act) unless it included strict anti-money laundering rules and restrictions for foreign issuers.

“Trump launched his own stablecoin — this is unacceptable. We have been working on regulation for three years, and now we are being rushed, ignoring key risks,” Waters emphasized.

This refers to the stablecoin USD1, launched by the DeFi project Trump’s family World Liberty Financial (WLF).

MEME Act

Meanwhile, Democratic Senator Chris Murphy proposed a law prohibiting US federal officials, including Trump, from promoting meme coins for personal gain. The document, called the MEME Act, aims to prevent the use of official positions for enrichment through digital assets or securities.

The trigger was TRUMP, launched before Trump’s inauguration on the Solana blockchain. Murphy called the token “an example of corruption”:

“Trump has turned the crypto market into a personal Venmo account, where foreign oligarchs transfer millions for political services.”

Congressman Sam Liccardo (Democrat from California) supported the MEME Act:

“Republicans remain silent while Trump turns the White House into a tool for personal enrichment.”

In a comment for Decrypt, financial policy expert Amanda Fisher stated that cryptocurrencies are often used for fraud. Officials should not be allowed to profit from them, she emphasized.

Investigation into Trump’s Crypto Ties

Democratic Senator Richard Blumenthal sent requests to World Liberty Financial (WLF) and Fight Fight Fight LLC, asking for details of Trump’s involvement in the projects. The politician announced that the Senate Investigations Committee is launching an inquiry into potential conflicts of interest and legal violations.

In a letter to Fight Fight Fight LLC, which issued TRUMP, Blumenthal pointed to sharp price fluctuations of the token and suggested that a select few profited from its launch. He also criticized a dinner with Trump, arguing that the event was initiated to boost token sales after interest waned.

“Trump’s ties to the TRUMP token and attempts to use the White House to increase its value are an unprecedented scheme of access to power for money,” the senator stated.

In his address to WLF, Blumenthal claimed that the Trump family gained “significant financial benefit” from the project, and cooperation with foreign investors poses a national security threat.

Companies must provide documents on ownership structure, financial flows, and measures to prevent conflicts of interest by July 27.

In April, the Senate called Trump’s gala dinner for TRUMP holders “surpassing all previous grounds for impeachment.”

Later, Trump stated that he does not profit from the meme coin and “does not follow it.”