The Trump crypto scandal is sparking outrage across Capitol Hill, with lawmakers accusing former President Donald Trump and his family of pushing a self-serving digital currency agenda. At the center of the controversy is a billion-dollar deal involving an Abu Dhabi-backed investment fund, a Trump-affiliated stablecoin, and crypto exchange giant Binance.
World Liberty Financial, a cryptocurrency venture co-owned by Trump’s sons Donald Jr. and Eric, holds direct ties to the former president. According to the company’s website, 60% of it is controlled by a Trump business entity. Critics say this setup dangerously blurs the line between public office and private profit.
A $2 Billion Deal Draws Fire
On May 1, the Emirati fund revealed plans to use Trump’s stablecoin to finance a $2 billion investment in Binance. The massive crypto transaction raised alarm among lawmakers, many of whom believe it undermines the GENIUS Act — a bipartisan effort aimed at regulating stablecoins with oversight, transparency, and consumer protection.
The scandal has already led to fallout. Democratic Rep. Maxine Waters stormed out of a House crypto hearing, calling Trump’s actions “a blatant abuse of power” and accusing him of using regulatory influence to benefit his personal interests.
Meme Coin Profits and Exclusive Perks
The Trump crypto scandal doesn’t stop at stablecoins. In late April, Fight Fight Fight, a company aligned with Trump’s brand, promoted its $TRUMP meme coin by offering exclusive rewards to top investors. Perks included an “intimate dinner” with Trump at his Virginia golf club and a now-deleted promise of a “VIP White House Tour” — despite him no longer being in office.
These promotions sent the coin’s value soaring by up to 80%. Since January, Trump-linked tokens and meme coins have generated over $300 million in trading fees. Many lawmakers view these profits as the result of a carefully orchestrated campaign to exploit Trump’s political brand.
Support for GENIUS Act Weakens
Once seen as a landmark in crypto oversight, the GENIUS Act is now on shaky ground. Senators across party lines are distancing themselves from the legislation. Democratic Sen. Elizabeth Warren called the Trump crypto scandal “a textbook example of corruption,” arguing that the bill, in its current form, could end up legitimizing Trump’s crypto ventures.
Senate Majority Leader Chuck Schumer has reportedly urged fellow Democrats to demand stronger anti-corruption measures before supporting the bill. At least nine Democratic senators have pulled their backing since news of the Trump deal broke.
Republican Lawmakers Also Voice Doubts
Though less direct in their criticism, some Republican senators are also signaling resistance. Sen. Rand Paul warned that the proposed regulations could stifle crypto innovation, while Sen. Josh Hawley expressed discomfort with the idea of private entities, including Big Tech, issuing stablecoins.
Sen. John Kennedy, too, remains undecided. He noted that “deals are being made all over the place” and refused to support the bill until its details are clarified.
Calls for New Safeguards and Reform
In response to the Trump crypto scandal, Sens. Jeff Merkley and Elizabeth Warren are drafting legislation to prohibit the president, vice president, and lawmakers — along with their families — from launching or profiting from crypto ventures while in office.
Sen. Merkley described Trump’s activities as “selling access to his office in broad daylight,” adding, “This isn’t just unethical — it’s corrosive to democracy.”
If passed, the End Crypto Corruption Act would aim to restore public trust by separating digital asset entrepreneurship from political power.
Public and political pressure continues to mount as the Trump crypto scandal unfolds. Whether it derails the GENIUS Act or reshapes how U.S. officials engage with digital assets, one thing is clear — the intersection of politics and crypto has never been more volatile.
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