Trump’s crypto agenda is threatened by his pursuit of personal interests

President Donald Trump is standing in his own way when it comes to passing the cryptography.

This week’s lawmakers rejected the Genius Act (a bill intended to establish federal rules for stubcoin) as part of concern that President Trump’s personal cryptocurrency venture has created an unprecedented conflict of interest.

“Anyone who wants to develop influence with the president now can personally enrich him by purchasing cryptocurrencies he owns or controls,” Sen. Jeff Markley (a statement to CNBC) explains his opposition to the bill. “This is a very corrupt scheme. It puts our national security at risk and erodes the public’s trust in the government.”

Stablecoins are digital currencies that are fixed at the value of other assets, such as the US dollar.

Passing something in Congress is a sudden and difficult battle for Republicans, given the thin razor majority in the House, the filibuster proof requirements in the Senate, and the increasingly unified attitude towards Democrats’ President Trump’s agenda. But enough Democrats appeared to be on board with ridiculous laws to bring a rare, bipartisan victory to the president.

That’s until $Trump gets in the way.

The president’s meme coin, which he launched shortly before taking office in January, added billions of dollars of paper value to his financial resources. Its value surged last month after the project offered a promotion to top $$$ holders with the president and “VIP White House Tour.” Senator Richard Blumenthal (D-Conn.) called it the “Pay-for-Play scheme.” First Lady Melania Trump also has a coin.

The Genius Bill didn’t advance in the Senate on Thursday. It required 60 votes to move to the Senate floor for the final passage. The final tally was 48, with 49 people compared to 49. The three senators did not vote.

Earlier in the week, Senate Democrats announced the “Final Crypto Corruption Act,” led by Merckley and minority leader Chuck Schumer of New York.

However, the key asylum in the Stubcoin Act last weekend said a group of nine Senate Democrats, four of whom had previously voted for the committee’s bill, did not support it and called for stronger provisions to address “anti-money laundering, foreign issuers and national security.”

Senator Lisa Blunt Rochester of Delaware was one of four. She directly pointed to Trump’s financial entanglement.

“I am also concerned about the ongoing conflict between self-dealing and financial interests by the Trump family,” she wrote in a statement Thursday.

It’s not just $ Trump and $ Melania meme coins. There is also Trump Family Venture World Liberty Financial, which was established last year and was when the administration pushed for loose regulations on digital assets.

Reports show that Abu Dhabi-based MGX is using Trump’s stubcoin for a $2 billion investment in crypto exchange vinance, creating yet another potential conflict of interest for the incumbent president.

For some investors and entrepreneurs in the crypto industry, the president’s pursuit of personal profits creates a major obstacle to the much-anticipated progress. After years of set-off during the Biden administration, Crypto-lobby funded Trump’s 2024 campaign and became a powerful force by successfully supporting Congress’s industry-friendly candidates.

“We’re looking forward to seeing you in the future,” said Ryan Gilbert, founder of FinTech Venture Fund LaunchPad Capital. “I hope everyone in the administration, including the president, will not get in the way of good policies.”

The White House did not respond to requests for comment. At a press conference Friday, White House spokesman Caroline Leavitt said when asked about the Memecoin dinner, “The President remains in the All Interest Contradiction Act.”

“The president is a successful businessman and I think it’s one of the reasons people have re-elected him to this office,” Leavitt said.

Many top Democrats, including Sen. Elizabeth Warren of Massachusetts and Kirsten Gillibrand of New York, joined the parade of critics, targeting President Trump’s personal pursuits. Gillibrand helped introduce the Genius Act earlier this year, but she said this week there are “a lot of notable issues that need to be addressed before the bill passes the full Senate.”

“For Americans in the future and everyday life of the US economy, I think it’s essential to enact strict stubcoins regulations and consumer protections that don’t exist now,” Gilibrand said in a statement. “I continue to hope with great confidence that I will be able to finish work soon.”

Senator Blumental called for an investigation into Trump-related coins, demanding financial records from the world’s Liberty Financial, and denounced the president for “attempting to use the White House to increase the value of $Trump.”

Sen. Ruben Gallego of D-Arizona, who was in favor of the act of genius, said he could not move forward this week after Republicans refused to provide more time to negotiate.

“There would have been no real bipartisan pathway if at least we had no time to finish the bill,” he wrote to X.

Gilbert of Launchpad said that the act of genius was just his first work. More broadly, the presidential conflict could affect not only the reputation of the US crypto industry on the global stage, but also the hopes of other legislative achievements and deregulation efforts.

“We become a laughing stock in the world for this particular reason, which hinders continuous investment and innovation,” Gilbert said. “For the past six months, we’ve wanted to be able to lead in the US and that investments will invest in crypto-related businesses, and then all companies will take the lead and invest in crypto assets, which will again be simpler and more viable.”

But he said, “If the act of genius does not pass, we have come back to one side.”

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