President Trump has just watched his biggest crypto drop of pushing because of his own wallet. On Thursday, the Senate rejected the Genius Act, a bill intended to set federal policies for Stablecoins.
The vote ended at 48-49, along with three senators missing. And no, this is not the party's politics that killed the bill – this is the personal empire of Trump's coin that blew it all from the inside.
This should be one of the rare moments where Democrats and Republicans have found the common basis. Lawmakers warmed up the idea of regulating stablecoins, especially after Gridlock years under Biden.
But just as the end line ends, Trump's $ Trump Meme coin, his wife's $ Melania coin, and a family -management company has fallen through the whole thing.
Trump's own adventures kill his law
Senator Jeff Merkley, a Democrat from Oregon, Says What others think: “Currently, people who want to grow influence on the president may enrich him personally by buying a cryptocurrency that he owns or controls.” He called the displacement “a deep corrupt procedure,” added that it threatened national security and collapsed in public trust.
Senator Lisa Blunt Rochester said from the Delaware that she could not vote yes because of “continuing self-talk and financial conflicts conducted by the Trump family.” This includes the recent $ Trump coin promotion: offers dinner and a White House tour of its biggest holders.
Senator Richard Blumenthal, from Connecticut, slapped it as a “pay-for-play scheme” and asked for a full investigation. He wants financial records from the World Liberty Financial, a company associated with the crypto trumpet launched last year. That company just rolled its own stablecoin, convenient as the White House pushed for looser policies throughout the space.
Then the foreign angle came. Reports say that Abu Dhabi -based MGX uses Trump's stablecoin to fund a $ 2 billion investment in Binance, the world's largest crypto exchange. This type of international deal tied directly to a sitting by the President of the United States is what Senate Democrats got.
Four of them supported the Genius Act on the committee. But over the weekend, they pulled out their support, calling for a more difficult language around the money laundering, foreign actors, and security risks.
The leaders of the crypto slam industry trump
Political disaster does not stop Congress. Earlier this week, the Democrats also introduced the End Crypto Corruption Act, a new bill designed to stop elected officials, their leading staff, and family members from launching or promoting any type of crypto.
It was led by Merkley and Senate Minority Leader Chuck Schumer. If it passes, it forbid Trump and his family from running the types of crypto projects they have been dashing since January.
Senator Kirsten Gillibrand from New York, who helped the draft of the original Genius Act, also turned away from the bill. He said there was still “a number of remaining issues” to fix before the bill could go to the floor.
“I believe that it is important in the future of the US economy and in the sunny Americans that we are conducting strict stablecoin regulations and consumer protections where no one currently exists,” he said.
Senator Ruben Gallego, a Democrat from Arizona, is ready to support the law. But he said there wasn't enough time left to get along. “Without more time to finish the bill, there is no real Bipartisan path,” he posted to X.
Meanwhile, Fintech investors rallied behind Trump's return now watching their hope.
Ryan Gilbert, founder of the Launchpad Capital, said the situation was “Kapus -pagan” and encouraged the administration to stop mixing business and policy. “I hope everyone in the administration, including the president, is not in the way of good policy,” Gilbert said.
In a press briefing on Friday, the White House Press Secretary Karoline Leavitt claimed that “the President obeyed all the conflicts of interest laws.” He added, “The President is a successful businessman, and I think this is one of the many reasons people have returned him to this office.”
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