Critics have long warned that Donald Trump's pro-cryptocurrency push as president, coupled with his links to his family's growing crypto empire, create substantial conflicts of interest that must be probed.
But so far, nothing has stopped Trump's family from seemingly benefiting from the presidency while expanding their empire. And now, Trump is rushing regulation through Congress that many Democrats fear could create his biggest conflict of interest yet.
On Tuesday, the Senate passed the GENIUS Act, a bill that will regulate stablecoins in the US, establishing guardrails and consumer protections that may spur wider crypto adoption nationwide. Unlike more volatile forms of cryptocurrency—like Trump's controversial memecoin—stablecoins' value can be pegged to the US dollar. The crypto industry is hoping the House of Representatives will quickly send the bill to Trump's desk, which Trump has demanded happen by August.
Although the stablecoin legislation prohibits "any member of Congress or senior executive branch official from issuing a payment stablecoin product during their time in public service," the bill does not stop Trump from benefiting from his prior deal backing crypto firm World Liberty Financial, which recently issued its own stablecoin.
Some Democrats are concerned that failing to prohibit Trump's links to the recently issued stablecoin could make it easier for Trump to use his own stablecoin to possibly hide payouts or bribes in exchange for favors such as eliminating tariffs or granting presidential pardons.
Senators are already attempting to probe a Trump-connected crypto deal they view as a "clear" conflict of interest. After World Liberty Financial launched a stablecoin called USD1, Trump seemingly profited when an Abu-Dahbi-based investment firm, MGX, used USD1 to "make a $2 billion investment in crypto exchange Binance, putting Trump’s company in a position to profit from the deal," ABC News reported.
In a letter to MGX and World Liberty Financial, Sens. Elizabeth Warren (D-Mass.) and Jeff Merkley (D-Ore.) asked what explanation MGX could possibly have to use USD1 over other more established cryptocurrencies, other than to curry favor with Trump.