Trump's Cryptocurrency Deal Disrupts Bipartisan Digital Asset Legislation

Efforts to establish a bipartisan regulatory framework for digital assets in the U.S. have faltered amid controversy over President Trump's and his family's extensive involvement in cryptocurrency ventures, particularly the launch of the USD1 stablecoin by World Liberty Financial. Congressional Democrats, led by Rep. Maxine Waters, halted a key joint hearing, citing ethical concerns and the exclusion of provisions to address Trump's crypto dealings. Senators Elizabeth Warren and Jeff Merkley have called for an ethics investigation into a $2 billion deal involving Trump's stablecoin and a UAE-backed investment, warning it could enable foreign influence and financial gain for the Trump family. The controversy has led Senate Democrats to threaten blocking the GENIUS Act, a bill designed to regulate stablecoins, unless stronger anti-money laundering and foreign oversight measures are included. Even some Republicans have expressed unease over Trump's close ties to the crypto industry, as he continues to promote personal crypto ventures that could generate significant revenue. These developments have cast uncertainty over the future of U.S. crypto regulation and highlighted growing political and ethical divisions on Capitol Hill.