The US Senate is initiating an investigation into Trump's crypto projects for conflicts of interest
Date: 2025-05-07 Author: Henry Casey Categories: BUSINESS
The political conflict around the participation of Donald Trump and his entourage in cryptocurrency initiatives is escalating in the US. The Democratic Party left the joint hearings in Congress, accusing Republicans of ignoring the conflict of interest associated with the current president's crypto projects.
The main reason was Trump's activity in the crypto sphere: the release of the TRUMP token on Solana, the promotion of the USD1 stablecoin from World Liberty Financial, as well as the participation of his family in the digital asset business. According to Democrats, such actions threaten the transparency of public policy.
Maxine Waters, vice chair of the Financial Services Committee, accused Republicans of "institutionalizing corruption" and said that the discussion of digital asset regulation cannot continue without taking into account Trump's role. However, the Republican side quickly took advantage of the procedural loophole, turning the hearing into a closed roundtable, continuing the discussion without opponents.
Brian Steil, who chairs the subcommittee on digital assets, and his ally French Hill called for focusing on developing a regulatory framework, rather than political disputes. However, they did not comment on the accusations regarding Trump's direct involvement in the crypto economy.
In parallel, Senator Chris Murphy proposed the MEME Act, which would prohibit federal officials from promoting meme coins for personal purposes. According to him, the TRUMP token has become a symbol of "an egregious abuse of power": foreign donors allegedly use it to finance political decisions.
Senator Richard Blumenthal sent official inquiries to World Liberty Financial and Fight Fight Fight LLC, demanding to disclose the ownership structure, sources of funding, and measures to prevent conflicts of interest. In particular, he was concerned about the sharp fluctuations in the value of TRUMP and the possible enrichment of a limited number of people. He also criticized the gala dinner Trump hosted for token holders as an attempt to artificially increase its price.
Blumenthal emphasized that the Trump family's involvement in projects involving foreign investors could pose a threat to national security. By July 27, companies must provide all necessary documents, including financial statements and information about partner structures.
In response to the accusations, Trump said that he does not profit from TRUMP and does not control the process. However, critics believe that his ties to the crypto market have already dealt a blow to trust in government institutions.
