Efforts to pass crypto legislation in the US Senate face mounting resistance

In a May 5 letter to the Office of Government Ethics, Senators Elizabeth Warren and Jeff Merkley said that Trump and his family stand to personally profit

Efforts to pass crypto legislation in the US Senate are facing mounting resistance amid growing ethical concerns around US President Donald Trump’s ties to crypto.

As reported by The New York Times, Senators Elizabeth Warren and Jeff Merkley have written to the Office of Government Ethics to express their worries over a deal that could see Trump and his family personally profit from an investment involving UAE state-backed firm MGX, crypto exchange Binance and World Liberty Financial (WLFI).

The senators called for an urgent probe, warning the deal may violate the US Constitution’s Emoluments Clause and federal bribery statutes.

At the center of the controversy is WLFI’s USD stablecoin, which is reportedly being used for a $2 billion investment MGX plans to make into Binance.

The senators said the transaction amounts to a potential backdoor for foreign influence and self-enrichment, with Trump’s allies allegedly set to receive hundreds of millions of dollars from the deal.

The senators highlighted that Trump’s son, Eric Trump, stands to gain personally from the transaction, having invested in WLFI’s parent company, according to the report.

Further complicating ethics concerns, Trump hosted a $1.5 million-per-plate dinner at his golf club in Sterling, Virginia on May 5. The event came just days after hosting a $1 million-per-plate fundraiser for the MAGA super PAC.

He is also planning to hold a gala dinner with major Official Trump (TRUMP) memecoin holders on May 22, despite multiple US lawmakers expressing concerns.

GENIUS Act faces roadblocks

The Trump family’s controversial $2 billion crypto deal comes as the Senate prepares to vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act and other crypto-related bills.

However, the fallout is already being felt in Congress. Some Democratic lawmakers are pushing for additional hearings before advancing any legislation, while others question whether Trump’s personal stake in digital assets is undermining bipartisan support for crypto regulation.

On May 5, Senate Majority Leader John Thune signaled a willingness to amend the GOP-backed stablecoin legislation in order to pass the bill in the coming weeks.

Speaking to reporters, Thune said that changes can be made on the floor and that he is waiting to hear what Democrats are asking for, according to a report by Politico.

Internal GOP challenges also remain, with Senator Rand Paul expressing uncertainty over backing the bill, the report adds.

The stalling isn't limited to the Senate. House Financial Services Committee ranking member Representative Maxine Waters plans to block a Republican-led event discussing digital assets on May 6.

The hearing, "American Innovation and the Future of Digital Assets," will discuss a new crypto markets draft discussion paper pitched by the House agricultural and financial services committee chairs, Representatives Glenn Thompson and French Hill, respectively.

Crypto community slams political pushback

Prominent crypto figures are speaking out as political resistance threatens to derail stablecoin legislation in the Senate.

"Elizabeth Warren and Chuck Schumer haven't learned their lesson," Tyler Winklevoss, co-founder of Gemini, posted on X.

"If they want Democrats to continue losing elections they will continue standing in front of crypto legislation like the stablecoin bill which they are stalling out in the Senate."