Efforts to pass crypto legislation in the US Senate are facing resistance due to ethical concerns surrounding President Donald Trump's connections with the crypto sector. Senators Elizabeth Warren and Jeff Merkley have raised alarms about Trump potentially profiting from a $2 billion investment linked to crypto exchange Binance and World Liberty Financial (WLFI), which could violate the Constitution’s Emoluments Clause. The controversy revolves around WLFI’s stablecoin, chosen for the investment, with warnings that it may open avenues for foreign influence and profit. Trump's recent fundraising events have further fueled these concerns, as he reportedly dined with key memecoin holders, raising ethical questions in Congress. The Senate is preparing to vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, but internal disagreements among GOP lawmakers could hinder progress. Prominent crypto figures have condemned the political pushback against stablecoin legislation, suggesting that ongoing political tensions could undermine bipartisan support for crypto regulation.

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