President Donald Trump will have to contend with a group of policymakers in Congress over his crypto-business ties, threatening the progress of the administration’s proposal for a digital asset market structure law.
Liberal senators are well aware of the foreign-backed investments made to the Trump-associated World Liberty Financial, revealed by the Wall Street Journal’s report earlier this week. The Trump administration should now expect new demands from Democrats, such as the inclusion of strict ethics provisions in the bill.
The White House is still lobbying members of Congress to pass long-awaited market structure rules for the crypto sector. But after withstanding the storm of Coinbase’s withdrawal of support, negotiations may be slowing again owing to concerns about the US President’s ethics.
$500 million investment in WLFI could bring down the market bill
At the center of the fight is a reported $500 million investment from Abu Dhabi in the Trump family’s World Liberty Financial. Democratic lawmakers argue the transaction raises many unresolved questions about foreign money intersecting with businesses within the president’s circle.
Republicans need Democratic votes to pass the bill, so the liberals have leverage to question Trump directly. Democrats say ethics language must prevent elected officials from benefiting from crypto ventures during their terms.
Senator Cory Booker, a proponent of digital asset innovation, said the situation changed their willingness to negotiate. “It has created more of a sense of moral urgency for us to have ethics as part of this. The Trump administration has demonstrated the grossest, most egregious corruption from the White House we have ever seen,” Booker said.
Senator Adam Schiff said ethics rules should not “treat the president differently than any other federal employee.” “If anybody needed another reminder, they just got it.”
White House, Republican Senators defend Trump
According to Billionaire donor Ken Griffin, the administration made decisions that were enriching to the families of those in the administration.
“Is the public interest being served?” He added society must “re-embrace some of the critical concepts of ethics in public services.”
In a recent statement from the White House, spokesperson Anna Kelly insisted the POTUS is “not involved in running his businesses” as he turned them over to his children.
“President Trump performs his constitutional duties in an ethically sound manner, and to suggest otherwise is either ill-informed or malicious. Mere appearances of business deals with which he has no involvement plainly cannot violate the Emoluments clause.”
Moreover, Republican Senator Cynthia Lummis believes the allegations concerning the Abu Dhabi deal were exaggerated. She coined them as “another attack on Trump that is pretty baseless.”
Lummis questioned how far a president must distance himself from children’s financial decisions before facing criticism, but admitted the issue is complicated. Like her, several GOP negotiators are willing to discuss ethics provisions if necessary to draw bipartisan support for the crypto market structure bill.
Robert Weissman of Public Citizen said the situation is “categorically different than anything that has come before and fundamentally compromising our foreign policy.”
The Senate Agriculture Committee advanced part of the bill last month on a party-line vote, but the Banking Committee is still drafting its section. At least 7 Democratic senators must back the bill for it to pass.
Bipartisan talks stall as candidates collect donations for midterms
As talks on the crypto bill cool amid a standoff between banks and crypto firms, election candidates are racking up donations from digital asset businesses. SuperPAC Fairshake, a political movement backed by Coinbase, Ripple, and Andreessen Horowitz, reported more than $190 million in funds ahead of the 2026 midterms.
Senator Elizabeth Warren said crypto supporters and donors should consider past ethics disputes before entering politics.
“This latest apparent bribe from the UAE, that puts our national security at risk, means that crypto supporters now have to overlook an even taller steaming pile of corruption,” Warren said.
Source: https://www.cryptopolitan.com/capitol-hill-trump-standoff-over-crypto-bill/
