Donald Trump’s personal cryptocurrency ventures are creating roadblocks for his administration’s crypto regulatory agenda, with the GENIUS Act—a key stablecoin regulation bill—failing to pass the Senate this week. Lawmakers on both sides of the aisle are raising conflict-of-interest concerns, particularly over Trump’s promotion of his $TRUMP meme coin and ties to a Trump-linked stablecoin.
Why Did the GENIUS Act Fail?
The GENIUS Act (Guaranteeing Equal Neutrality in Issuance of United States Stablecoins) aimed to establish federal oversight for stablecoins, a critical step toward crypto market stability. Initially, it had bipartisan support, but skepticism grew due to:
TRUMPMemeCoin∗∗–Thetokensurgedafterhisendorsements,raisingethicalconcerns.✔∗∗StablecoinControversy∗∗–A∗∗Trump−affiliatedstablecoin∗∗wastiedtoa∗∗2B investment from Abu Dhabi’s MGX into Binance, fueling fears of foreign influence.
✔ Money Laundering Risks – Some Democrats demanded stricter AML (anti-money laundering) rules before backing the bill.
The bill ultimately failed, receiving only 48 votes (60 were needed).
Lawmakers Warn of Corruption & National Security Risks
Senators highlighted serious ethical and security concerns:
“People who wish to cultivate influence with the president can enrich him personally by buying cryptocurrency he owns or controls.”
— Sen. Jeff Merkley (D-Ore.)
Merkley argued that Trump’s crypto dealings create a “corrupt practice” that could:
Undermine national security
Erode public trust in government
Encourage foreign manipulation
What’s Next for Crypto Regulation?
Despite the setback, some lawmakers remain hopeful:
Sen. Kirsten Gillibrand (D-N.Y.) stressed that stablecoin regulation is still necessary.
Others insist on stronger safeguards to prevent conflicts of interest.
However, Trump’s crypto ventures may continue to complicate efforts to pass clear crypto laws, leaving the industry in regulatory limbo.
Key Takeaways:
🔹 The GENIUS Act failed due to Trump’s crypto conflicts.
🔹 Lawmakers fear his meme coin & stablecoin ties pose corruption risks.
🔹 Stablecoin regulation remains uncertain amid political gridlock.
