Trump Crypto -Deal provokes the setback of the Senate and calls for an investigation

The Democrats of the Senate call for changes to the cryptocurrency laws pending in the congress and sometimes react to growing evidence that the Trump family uses their connections and President Trump's authority to benefit from the crypto trade.

At the end of last week, the pushback increased after a meeting of the Senate Democrats, in which Senator Chuck Schumer, the democratic chairman, that they should not commit themselves to vote for the so-called genius law, a legislation supported by the crypto industry.

For months, the bill seemed to be sliding towards passage with the support of both parties, and this week it was planned for a procedural vote. In the meeting, however, the Senate Democrats commented on the fact that legislation would benefit the Trump family's crypto business directly, citing New York Times.

One of the concerns that the senators have addressed, according to the legislator, was the crypto company World Liberty Financial, associated with Trump, recently a contract to conclude deposits of $ 2 billion from an Emirati risk clerch supported by the government of Abu Dhabi, as reported last week.

“It is an influence, a conflict of interest, just a massive form of corruption that we have not seen,” said Senator Jeff Merkley, Democrat of Oregon, in an interview and said he said he did at the meeting. “And it has to be ended.”

And Senator Elizabeth Warren, Democrat of Massachusetts, urged other Democrats to face this matter.

The legislation of the Senate “will make it easier for the president and his family to exclude their own pockets,” said Ms. Warren in an explanation. “This is corruption and no senator should support it.”

These ethical concerns have contributed to a broader discomfort about the draft law among the Democrats. Several senators have also pointed out other questions and argues that legislation lacks sufficient protection against money laundering.

World Liberty did not immediately respond to inquiries about comments.

Anna Kelly, a spokeswoman for the White House, said Mr. Trump had no conflict because his assets are trusted in a trusted one by his children. (Mr. Trump still benefits financially from the investments.) “The legislation in Stablecoin should be adopted,” said Ms. Kelly in a statement. “President Trump endeavors to make America a crypto capital of the world and to revolutionize our digital financial technology.”

Crypto executives campaigned for months to say goodbye to the Genius Act, an invoice that would make it easier for US companies to act in stablecoins, a kind of cryptocurrency that maintains a price of $ 1. It would be one of the first formal actions of the legislator to create a regulatory system that could help the industry in the United States. Crypto dealers like to use stable coins because they do not vibrate as high as other digital currencies, which makes them comfortable for many types of business transactions.

A thrust for the industry would also be a thrust for the world Liberty and expands the market for a stable coin that it had recently exhibited. The Trump family and their partners have already been positioned to record tens of million dollars a year in the stable coins published by World Liberty per year, if not more.

This view has triggered the democratic legislator.

At the meeting on Thursday, the Democrats received a number of objections to the draft law, which referred to Mr. Trump's conflicts of interest and language that would help in overseas stablecoin companies to escape some of the new rules.

On Saturday, a group of nine Democrats, including four, which voted to bring the legislation out of the Senate Banking Committee without significant changes. They argued that the law had no strong provisions to stop money laundering and foreign crypto companies from the police, but did not mention that Mr. Trump's crypto business did not mention.

The Senate Republicans need at least seven democrats to coordinate with them to postpone the legislation of previous procedural hurdles. Therefore, the opposition that has arisen could kill the legislation, which may have a big blow to the political goals of the crypto industry in Washington in Washington.

During the election cycle of 2024, crypto companies spent more than 130 million dollars for congress candidates, including Democrats in tight races such as Senator Elissa Slotkin from Michigan and Senator Ruben Gallego from Arizona. Mr. Gallego, who voted to get the genius law out of the banking committee, was one of the legislators who had signed the explanation this weekend to express concerns about the law.

Mr. Merkley and Ms. Warren pulled separately on Monday to ask the Office for Government Ethics to examine the growing business for cryptocurrency of the Trump family, and “call them a terrifying level of foreign influence and the potential for a pronounced pro quo that could endanger national security”.

A version of the StableCoin Act is also pending in the house, in which democratic leaders want to protest against the role of Mr. Trump in the industry on Tuesday by leaving a hearing on the industry.

The representative Sam Liccardo, the Democrat of California, who supports the legislation of Stablecoin, said that the recent steps of the Trump family have frustrated the Krypto executives who pushed the congress to complete the legislation.

“I was increasingly concerned in Silicon Valley from the executives of the crypto industry – deep discomfort about how Trump integrated this industry into a kleptocratic system that was managed by his sons,” said Liccardo.

Even some Republicans of the Senate and long -standing crypto supporters have expressed concerns about Mr. Trump's efforts to benefit from crypto. “This is my president we are talking about, but I am ready to say that this gives me a break,” Senator Cynthia Lummis, Republican of Wyoming, told NBC News last week.

As a former crypto skeptic, Mr. Trump accepted digital currencies on the campaign path last year and promised to transform the United States into the “Krypto capital of the planet”. In September, he and his sons announced that they would start World Liberty, a company that would offer its own digital currencies.

Once in office, Mr. Trump appointed executives in large federal authorities who support the industry and quickly ended the bidges administration. The main goal of the crypto world in Washington, however, was to secure ambitious laws that would consolidate the reputation of the industry in the US financial system.

The ingenious act was the first draft law that gained dynamics. In March, the banking committee voted at the age of 18 to 6 to advance legislation, with Mr. Gallego and four other Democrats supporting them.

It soon became clear that the rules of StableCoin would overlap with Mr. Trump's business. About two weeks after the committee coordinated, World Liberty announced that it would offer its own stable coin called USD1, which could be extremely profitable for the Trump family.

Companies that issue stablecoins work similarly to banks: the issuers earn money by accepting deposits from buyers, giving them coins in return and investing these deposits to generate a return that keep the companies.

Last week, one of the founders of World Liberty announced at a crypto conference that a risk capital company supported by the government of Abu Dhabi would use 1 billion US dollars to carry out a large industry transaction -in order to effectively transfer money into a company of the president's company.

The latest reporting from Times about the Abu Dhabi transaction and other conflicts of interest that were widespread in Capitol last week. The Democrats of the Senate distributed research memos under which these investigations quoted and attack the legislation as a means for the Trump family in order to “benefit corrupt from its cryptocurrency programs,” said the copies received by The Times. Represented Maxine Waters, democrat of California, read in one of the articles in the Times in his entirety during a hearing in the committee.

At the meeting of the Senate Democrats, Mr. Schumer said that he was concerned about the language in legislation, the Tether, a foreign company that had been organized by the US supervisory authorities in the past, could offer stable coins in the United States without many of the requirements of the law, said congress helper. He asked the Democrats to examine classified briefings that the banking committee had put together via Tether.

A spokeswoman for Tether did not answer a request for comments. Some details of the meeting were previously reported by Axios.

On Monday, the Senate advisors said that the negotiations continued to try to remedy some of the concerns that have raised the democrats as legislators of both parties, including Senator Kirsten Gillibrand, the Democrat of New York, a co-sponsor of the legislation, after an opportunity to move the statutory farewell.

Mr. Trump showed no signs that he was deterred. On Monday, he published an illustration of himself with his fist in the air in his social media platform Truth and asked his supporters to buy a cryptocurrency called $ Trump, another new company that generated more than 100 million US dollars for his family and partners.

On Monday evening, a Super-Pac, which Mr. Trump supports, should hold a fundraiser in his Trump National Golf Club in Virginia, which was sponsored by crypto managers and who were asked to pay $ 1.5 million each.