Democrats are intensifying their scrutiny of President Donald Trump’s cryptocurrency ventures as a key vote approaches on the GENIUS ACT, a bill aimed at establishing federal rules for stablecoins. The bill’s progress is set to test the crypto lobby’s influence, which has been a strong supporter of Trump’s 2024 presidential campaign. Despite limited power in Congress, Democrats are pushing for investigations into Trump-connected coins and their backers, demanding financial records and blocking related legislation.
On Capitol Hill, Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, walked out of a hearing on digital asset allocation alongside fellow Democrats, effectively halting the session. That same day, Sen. Richard Blumenthal of Connecticut announced an inquiry into the Trump family’s growing crypto empire. He criticized a promotion linked to the $TRUMP meme coin, calling it a “pay-for-play scheme.” Blumenthal, who serves on the Senate Permanent Subcommittee on Investigations, requested records from Fight Fight Fight LLC, the company behind the $TRUMP coin, and World Liberty Financial, another Trump-associated crypto venture. He demanded documentation on ownership, revenue, and communication with the White House, citing concerns over conflicts of interest and national security risks.
The Trump Organization reportedly controls around 80% of the $TRUMP token’s supply. The project gained attention last month when it ran a promotion offering top $TRUMP holders a chance to dine with the president and take a VIP White House tour, causing the token’s value to surge. Blumenthal’s inquiry focused on this promotion, accusing Trump of using the White House to boost the value of his crypto assets.
While the Republican-controlled White House and Congress limit Democrats’ ability to advance legislation or lead investigations, they are pressing forward with efforts to highlight what they view as corruption in the crypto market. Waters introduced a draft bill that would prohibit the president and members of Congress from profiting off crypto assets while in office. In the Senate, Democrats unveiled the “End Crypto Corruption Act,” aimed at stopping elected officials and their families from issuing or endorsing digital assets.
Additionally, Democratic senators sent a letter demanding an ethics review of a deal between World Liberty Financial, crypto exchange Binance, and a UAE-backed fund, warning of potential conflicts of interest and national security concerns.
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