Emre Yumlu 
President Donald Trump’s connections to the crypto world are disrupting regulatory efforts in the U.S. Senate, particularly following a $2 billion stablecoin deal backed by the United Arab Emirates-based firm MGX. The deal has triggered ethics investigations and cast doubt over the future of proposed stablecoin regulations.
Are Trump’s Crypto Ties Unethical?
In a letter dated May 5 to the U.S. Office of Government Ethics, Senators Elizabeth Warren and Jeff Merkley alleged that Trump and his family stand to profit personally from an investment involving MGX, Binance, and World Liberty Financial (WLFI). The senators claimed that MGX chose WLFI’s USD1 stablecoin for a $2 billion investment, raising red flags.
They warned the deal could potentially violate the U.S. Constitution’s Emoluments Clause and federal anti-bribery laws. There are concerns that individuals close to Trump could earn hundreds of millions of dollars from this transaction.
“This agreement may allow the Trump and Witkoff families to profit from foreign influence through stablecoin activity,” the senators wrote.
Crypto Legislation Gridlocked in the Senate
These developments have derailed momentum for new stablecoin and digital asset legislation in the U.S. Senate. Among the affected bills is the GENIUS Act, which was expected to be debated in the coming weeks but is now caught in political crossfire.
Senate Majority Whip John Thune suggested that some sections of the bill might be revised to address Democratic concerns. However, even Republicans like Senator Rand Paul have started questioning their support, exposing internal divisions that are slowing down the legislative process.
Meanwhile, Representative Maxine Waters, a senior member of the House Financial Services Committee, took steps to block a May 6 digital assets forum, where a draft bill titled “American Innovation and the Future of Digital Assets” was scheduled to be discussed.
Crypto Community Pushes Back Against Political Resistance
Leaders in the crypto industry have expressed frustration over political interference with stablecoin legislation. Tyler Winklevoss, co-founder of Gemini, criticized the obstruction in a post on X:
“Elizabeth Warren and Chuck Schumer haven’t learned a thing. If Democrats want to keep losing elections, they should keep blocking stablecoin legislation in the Senate.”
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