The Trump Family's Latest Cryptocurrency Gambit May Have Flown Too Close to the Sun

The Trump family’s latest cryptocurrency gambit may have flown too close to the sun. Now, one of the most pivotal attempts to regulate the stablecoin industry — the bipartisan GENIUS Act — is at stake.

World Liberty Financial, which is run by President Donald Trump’s sons Don Jr. and Eric, is at the center of the storm. According to the crypto company’s website, 60% of it is owned by a Trump business entity, and the venture’s close ties to the president are clear. And a recent deal the Trump-associated business has Capitol Hill up in arms.

On May 1, an Abu Dhabi–backed investment fund announced it would be using the Trump family’s stablecoin to fund a $2 billion investment in Binance, the crypto exchange.

But the Emirati deal isn’t the only stir the Trump-backed crypto venture has caused.

In late April, Fight Fight Fight, a company affiliated with Trump, promoted the $TRUMP meme coin by offering “an intimate private dinner to the top 220 investors with President Trump at his golf club in northern Virginia and a VIP White House Tour to the top 25 holders.” The coin’s value skyrocketed by as much as 80%. Trump-linked crypto ventures have generated over $300 million in trading fees from meme coin and token sales since January.

But before last week, the GENIUS Act had been widely supported — a piece of legislation is aimed at bringing federal oversight and consumer protection to the booming and often volatile stablecoin industry. Introduced last fall by Sens. Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY), it would set strict requirements for reserve backing, transparency, and licensure for any issuer of U.S. dollar–pegged stablecoins.

The legislation was seen by many as a long-overdue answer to a regulatory gray zone that has allowed stablecoin projects to balloon with little to no federal oversight. The Senate is set to begin considering the GENIUS Act on Thursday, but it’s now become more complicated — it lost at least nine Democratic supporters last week.

Sen. Elizabeth Warren (D-MA) warned that the GENIUS Act “will make it easier for the president and his family to line their own pockets.”

“This is corruption, and no senator should support it,” she added. And at a closed-door meeting last week, Senate Democratic Leader Chuck Schumer (D-NY) urged his party to hold firm on withholding their support for the legislation unless they can get tighter anti-corruption measures included in the bill.

It’s not just Democrats who have expressed wariness over the president’s crypto dealings, although they’ve been the most vocal about their outrage. Lawmakers on both sides of the aisle have suggested they might not be able to vote for the legislation — but while Republicans haven’t expressly said that they wouldn’t support the GENIUS Act because of Trump, they’ve signaled that they could vote against it for other reasons.

Sen. Rand Paul (R-KY), for instance, said on Tuesday that he’s likely to vote no because he feels the regulations it would place on the industry could ultimately harm it in the long run. And Sen. Josh Hawley (R-MO) said he’s “not a fan of Big Tech issuing their own stablecoin,” which the GENIUS Act would allow.

Sen. John Kennedy (R-LA) is also wary about voting for the bill — especially as Democrats are working to change the phrasing and key aspects of the legislation in an attempt to get more senators on board.

“They’re making deals all over hell and half of Georgia,” Kennedy said. “Until I understand what those deals are and how the bill has changed, I’m not going to be able to vote for it.”

Trump, who has branded himself as “the first Crypto president,” has maintained that he has no interest in crypto and that he's never invested in it. But the president’s sons, Don Jr. and Eric, have been open about their involvement in cryptocurrency ventures.

Earlier this year, they launched World Liberty Financial, a company that is developing its own stablecoin, WSF, and is investing in various crypto projects. The Trump family’s ties to the crypto startup are significant: According to World Liberty Financial’s own website, 60% of the company is owned by a Trump business entity, and the venture’s close integration with the president is evident.

But it’s not just the Trump family’s financial interest in World Liberty Financial that has raised eyebrows. Recent reports indicate that the Trump-associated business has been involved in several endeavors that have sparked outrage and unrest among members of Congress.

In May, an Abu Dhabi–backed investment fund announced it would be using the Trump family’s stablecoin to fund a $2 billion investment in Binance, one of the