Concerns over Trump’s conflict of interest are slowing the progress of broader crypto policy ⋅ Crypto World Echo
Discussions on personal enrichment and conflicts of potential interests arising from the American president Donald TrumpThe Crypto Asset ventures won steam during last week. These concerns slow down not only the progress of the legislation on stablescoin, but also a wider cryptography policy. The founder of Fintech Venture Capital Fund Launchpad Capital, Ryan Gilbert, said CNBC:
“It is regrettable that personal affairs are hindering good policy … I hope everyone in the administration, including the president, obtains a good policy.”
The legislation on Stablescoin, known as the Act respecting the National Innovation for Stables Coins (Engineering), aims to establish a regulatory framework for American payment stables.
The bill “is generally perceived as the legislation which will be the easiest to pass”, Katrina Paglia, legal director of the venture capital company Pantera Capital, said CNBC earlier this week. Consequently, Paglia was disappointed when the genius law failed to spend the Senate Thursday with a vote of 48-49, but was not “surprised”.
The ethical concerns about Trump's profits from assets and cryptographic companies had blocked the discussion on the project for the American cryptography market structure Invoice Scheduled for May 6. The market structure bill was presented on Monday, aimed at providing an essential regulatory clarity. The bill was aimed at providing clear directives on how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) would classify and supervise digital assets.
The sequence of events that have raised problems of conflict of interest
A few days before the inauguration of Trump, he launched the official $ Trump Samecoin, whose price increased to a summit of $ 75 on January 19, according to Cryptoslatedata.
The price of $ Trump dropped quickly after the inauguration of Trump, leading small investors to lose more than $ 2 billion. Meanwhile, companies linked to Trump, which control 80% of the memecoin offer, have won around $ 100 million in negotiation costs before January 30, Reuters reported in February.
In March, representatives of the Trump family were would have In talks to acquire a participation in the American branch of Binance, which paid a historic fine after pleading guilty of having violated the anti-flowage laws in 2023.
On March 13, the senatorial banking committee pass The act of genius. On March 25, World Liberty Financial, a decentralized finance project linked to the Trump family, announcement plans to launch your own stablecoin, USD1.
The investment of the investment giant based in Abu Dhabi MGX in Binance was announcement March 12. But on May 1, co-founder of the WLF confirmed This USD1 was selected to execute the transaction, according to Reuters. The MGX is chaired by Sheikh Tahnoon Bin Zayed Al Nahyan, National Water Security Advisor to the President of Water Sheikh Mohammed Bin Zayed. Mubadala, a partner of MGX.
At the end of April, Trump invited the first 220 of his same holders to a private audience during a gala dinner on May 22. At the time, the American Democratic Senator for Georgia Jon Ossoff called The move an “impeccant offense”.
Earlier this week, the Financial Times reported That the initiates earned nearly $ 100 million by buying Melania Trump's same, the American first lady, a few hours before her public launch.
Last week intensified tensions around the “ corruption of Trump ''
The act of genius was supposed to navigate. But last weekend, nine Democrats in the Senate, including four who previously voted for the bill, said They would refuse support if the bill was not revised to respond to the concerns of national security and money laundering.
On May 6, MP Maxine Waters (D-CA), the best democrat of the Chamber's Financial Services Committee, used the time planned to discuss the bill on the cryptographic market structure to protest “Trump corruption”. Waters declared that Trump made at least $ 350 million in his same, adding:
“Trump ran on a campaign to put more money in the pockets of the Americans – he makes him say that he just wanted to say his pockets and those of his friends.”
During the same audience, Chasty Murphy, principal advisor for the financial institutions of the Treasury Department, said Trump's Crypto Empire is a vehicle to “influence hawking, corruption and regulatory capture”. Representative Stephen Lynch said Trump had gained around 2.9 billion dollars, which is more than 40% of his wealth – of his cryptographic companies.
On May 7, American senator Mark Kelly presented The end Crypto Corruption Act aimed at prohibiting members of the congress and family members to “deliver, approve or sponsor cryptographic assets, such as the parts and the floors.” He noted:
“Trump collects his presidency and makes millions of people from his own crypto pieces – it's corruption in broad daylight.”
Friday, in a letter, the Democratic senators urged the secretary of the treasury Scott Bessent and the prosecutor General Pam Bondi to investigate Trump's ties with Binance, Bloomberg reported. Meanwhile, the former CEO of Binance, Changpeng Zhao (CZ), who served four months in prison, asked Trump a forgiveness.
Senator Jeff Merkley told CNBC in a statement:
“Currently, people who wish to cultivate the influence with the president can enrich it personally by buying a cryptocurrency that he has or controls … It is a deeply corrupt diet.”
Despite the concerns, the senators of the two parties have already started to negotiate since the missing vote on Thursday and were able to vote again on the law on genius next Monday. Most legislators expect the engineering law finally adopts the Senate and the Earth on Trump's office, but the calendar is uncertain in the problems of conflict of interest.
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