Donald Trump's Direct Involvement in the Cryptocurrency World Is Leading to Major Hurdles Towards the Realization of His Crypto Agenda

Donald Trump’s direct involvement in the cryptocurrency world is leading to major hurdles towards the realization of his crypto agenda. This week, the GENIUS Act

Donald Trump’s direct involvement in the cryptocurrency world seems to be creating major hurdles towards the realization of his crypto agenda. This week, the GENIUS Act, a significant piece of legislation to set up federal regulations for stablecoins, could not pass through the Senate.

The reason for disagreement is the fear of conflicts of interest, especially concerning Trump’s crypto businesses, such as his meme coins.

Bipartisan Support Undermined by Meme Coin Controversy

The GENIUS Act had received bipartisan support, with both Democrats and Republicans acknowledging the need for stablecoin regulation. However, the support began to fade because of the $TRUMP meme coin, which had seen a surge in value following Trump’s endorsement and controversial promotions.

One such promotion, which saw top holders of the coin receive a dinner with the president and a VIP White House tour, led to a massive rally in the meme coin’s value. Critics, such as Senator Richard Blumenthal, D-Conn. referred to this as a “pay-for-play scheme,” describing that this was a conflict of interest.

Related: CZ Dissociates Self From TRUMP Meme Coin, Confirms Owning None

Senators Warn of Corruption and National Security Risk

Senator Jeff Merkley, D-Ore., challenged the president over his financial entanglements. He stated:

Currently, people who wish to cultivate influence with the president can enrich him personally by buying cryptocurrency he owns or controls

He asserted that it is a corrupt practice that endangers national security and erodes public confidence in the government. Merkley’s comment aligns with increasing anxiety in the legislature over Trump’s involvement with the crypto industry.

Trump’s crypto activities are not limited to meme coins. World Liberty Financial launched a stablecoin when its administration lobbied for slacker crypto regulations. According to reports, Trump’s stablecoin was involved in a $2 billion investment by an Abu Dhabi-based MGX into the crypto exchange Binance, which further raises concerns of conflicts of interest.

Legislative Setback

The GENIUS Act was ultimately defeated in the Senate on Thursday, receiving 48 votes out of a necessary 60. Such a setback came as a result of a withdrawal of support from various Senate Democrats, including Sen. Lisa Blunt Rochester of Delaware. They raised concerns over Trump’s financial conflicts of interest, and they urged for stronger anti-money laundering measures.

Despite the setback, some legislators expressed hope for future legislation. Sen. Kirsten Gillibrand highlighted the importance of strong regulations on stablecoins. However, worries regarding Trump’s financial relations could slow down the work of implementing a clear regulatory framework for the burgeoning cryptocurrency market.

News data source: kdj.com

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