US President Donald Trump’s increasing connections to the cryptocurrency market, alongside his family’s financial interests, have sparked intense backlash in the Senate and led to ethics investigations. This controversy was triggered by a $2 billion transaction between a Trump-associated cryptocurrency firm and a government-backed Emirati fund, along with the introduction of a Trump-branded stablecoin and various fundraising initiatives that blur the distinction between public service and personal profit.
“It’s a selling of influence, a conflict of interest, it represents a significant level of corruption that we’ve not encountered before,” remarked Senator Jeff Merkley, a Democrat from Oregon.
In a recent post on May 5, 2025, Merkley stated, “This needs to be halted.” He later shared his concerns on X, underscoring the alarming conflict of interest where a president appears to profit by selling access.
Senator Elizabeth Warren and I are pressing for clarity on the billion-dollar deal involving a Trump-backed cryptocurrency venture and a foreign firm.
@SenWarren and I demand answers regarding the billion-dollar deal between a Trump-associated cryptocurrency firm and a foreign entity. This constitutes an alarming conflict of interest: a president profiting from his own access.
Furthermore, Warren asserted that the Senate’s legislation could allow the president and his family to enrich themselves further, declaring, “This is corruption that no senator should endorse.”
$2 Billion Cryptocurrency Agreement Raises Concerns
Recently, Senate Democrats raised alarms about a significant $2 billion agreement where World Liberty Financial (WLF), a crypto company closely connected with the Trump family, secured funds from MGX, an investment group supported by the Abu Dhabi government. The deal, revealed during a Dubai conference by Zach Witkoff, WLF’s co-founder and son of Trump’s Middle East envoy, will involve MGX utilizing WLF’s USD1 stablecoin for transactions through Binance, the leading global crypto exchange.
The situation has disrupted the progress of the GENIUS Act—a bipartisan initiative aimed at forming regulations for stablecoins. Democrats demand modifications, fearing the legislation might primarily benefit Trump’s cryptocurrency undertakings.
A collective of nine Democrat senators stated, “The current formulation of the bill has substantial deficiencies that require addressing, including strengthening anti-money laundering regulations, considerations on foreign issuers, national security, and ensuring the accountability of those falling short of the act’s criteria.”
“The Stablecoin Legislation Should Be Passed on a Bipartisan Basis,” Says White House
In response, Anna Kelly, a spokeswoman from the White House, stated that Trump experienced no conflict since his assets are managed by a trust held by his children. She insisted, “The stablecoin legislation should be passed on a bipartisan basis.” Kelly emphasized Trump’s commitment to establishing America as the leading hub for cryptocurrency and transformative digital finance.
Key Takeaways
- Despite growing concerns regarding Trump’s crypto dealings, the Office of Government Ethics possesses limited authority to enforce divestiture or initiate legal action against a sitting president. With both Congressional chambers and the White House under Republican leadership, calls for accountability from Democrats might fall on deaf ears.
- The pushback against Trump’s ventures extends beyond Democrats; even some Senate Republicans and staunch crypto proponents have voiced skepticism regarding the Trump family’s aggressive monetization strategies linked to cryptocurrency.
