Democrats Reject Crypto Legislation Amid Trump Conflict Concerns

Democrats in Congress are raising strong objections to President Donald Trump's deepening involvement in the cryptocurrency industry, citing concerns over conflicts of interest and potential corruption. Lawmakers, including Rep. Maxine Waters and Rep. Gerry Connolly, argue that Trump's personal crypto ventures—such as his family's memecoins, the World Liberty Financial project, and the USD1 stablecoin—blur the line between public service and private gain. These issues have led several Democrats to withdraw support for key cryptocurrency legislation, including the GENIUS Act, which aims to regulate stablecoins. Democratic senators and representatives have pointed to recent actions, such as the SEC dropping enforcement cases against major crypto firms and the Justice Department scaling back crypto prosecutions, as evidence of regulatory capture influenced by Trump's ties. The controversy has stalled progress on both stablecoin and broader crypto market structure bills, with some Democrats demanding provisions to prohibit presidential involvement in crypto businesses. While Trump denies personally profiting from these ventures, his administration's perceived favoritism toward the industry has intensified partisan divisions and legislative gridlock on crypto regulation.