June 28, 2025

CryptoInfoNet

Cryptocurrency News

Trump’s Connections to Crypto Cast a Shadow Over Digital Asset Legislation in Congress

Trump’s crypto ties cloud digital assets legislation in Congress

Leadership in the US House Financial Services Committee (HFSC) appeared unlikely to find common ground on regulations for digital assets, particularly concerning President Donald Trump’s potential conflicts of interest with the industry.

During a hearing on June 4, committee ranking member Maxine Waters voiced her concerns that, without clear definitions in the bill, Trump might exploit the Digital Asset Market Clarity (CLARITY) Act to further his financial interests in crypto.

The California representative pointed to instances where the president hosted a dinner for top memecoin holders, who reportedly paid around $148 million for the opportunity to attend, suggesting Trump could leverage the market structure to “put [Americans’] money in his digital wallet.”

“This hasty and overly complex bill will cause increased harm to investors, an issue that already permeates today’s crypto market,” Waters stated, referencing the proposed CLARITY Act.

“Some of the riskiest activities are broadly exempted from this bill, leaving our constituents without recourse when their funds disappear. The bill jeopardizes national security and includes no penalties for crypto offenders.”

Rep. Maxine Waters addressing US lawmakers on June 4. Source: House Financial Services Committee

The CLARITY Act, which was introduced by Republicans with support from three Democratic co-sponsors on May 29, has been labeled as a bipartisan measure aimed at establishing regulatory guidelines for the crypto sector.

Numerous Democratic lawmakers have initiated calls for investigations into Trump’s affiliations with his family-backed crypto platform, World Liberty Financial, in addition to his various digital asset investments, as Congress evaluates legislation to regulate payment stablecoins and construct a market framework.

Related: Pakistan reveals Bitcoin reserve plan to Trump’s crypto team at White House

“At present, there exists no federal framework governing digital assets,” HFSC Chair French Hill stated during the June 4 hearing. “The SEC [Securities and Exchange Commission] and CFTC [Commodity Futures Trading Commission] do not possess clearly defined jurisdictional boundaries regarding digital assets, which places investors and entrepreneurs in a state of uncertainty and often discourages innovation.”

Except for one, none of the witnesses called to testify at the hearing acknowledged Trump’s potential conflicts of interest in their opening statements. This included former CFTC Chair Rostin Behnam, former SEC Commissioner Elad Roisman, and Uniswap Labs Chief Legal Officer Katherine Minarik. In response to questions from Waters, former CFTC Chair Timothy Massad remarked that Trump’s crypto endeavors represented a “taint” on the industry posing national security risks.

“We currently cannot ascertain whether the president’s actions are in America’s best interest or primarily for his personal financial gain,” Massad stated. “This is a matter we must address; advancing without resolving this issue is untenable when creating a framework for the industry.”

In May, Waters proposed legislation aimed at barring the president, vice president, members of Congress, and their families from participating in the crypto sector. This proposal coincided with the day Trump hosted his memecoin dinner at his golf club. Despite White House claims that the event was held “in his personal time,” Trump delivered remarks from a lectern adorned with the US presidential seal.

The House Agriculture Committee conducted a separate hearing on June 4 to explore a digital asset framework. Ranking member Angie Craig asserted that Trump was complicating efforts to enact crypto legislation, noting the potential for utilizing non-public information to profit from the industry, including through his memecoins.

Crypto bills under scrutiny in the House and Senate

Both the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS, Act aimed at regulating payment stablecoins in the Senate and the market structure bill in the House may encounter ongoing opposition from Democrats and lawmakers wary of legislation that lacks a specific carveout to address Trump’s connections to crypto. The GENIUS Act successfully passed a significant vote in May, enabling it to be reviewed by the entire chamber, while the CLARITY Act remained under consideration in the House Financial Services Committee as of May 29.

Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations: Samson Mow

Source link

#Trumps #crypto #ties #cloud #digital #assets #legislation #Congress

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © All rights reserved. | Newsphere by AF themes.