Crypto Chaos: Trump’s Digital Wealth Derails Senate Bill?

Senate Vote on Stablecoin Bill Highlights Crypto Policy Challenges

The GENIUS Act, aimed at regulating stablecoins, faced a setback in the Senate. the procedural vote ended in a 48-49 split, with two Republicans siding with Democrats. This outcome reveals growing partisan divides, despite both parties publicly supporting crypto regulation.

Blockchain attorney Marta Belcher previously stated that crypto support is nonpartisan. However, recent events suggest otherwise. Democrats and Republicans have differing views on crypto regulations. For instance, President Trump’s memecoin, Official Trump (TRUMP), has become a contentious issue. Democrats feel Republicans haven’t adequately addressed concerns about potential financial misconduct.

During Biden’s presidency, crypto saw significant milestones, like Coinbase’s NASDAQ listing and Bitcoin ETF approvals. Yet, SEC Chair Gary Gensler filed numerous lawsuits against crypto firms, viewing most cryptocurrencies as unregistered securities.This stance hindered innovation.

Under Trump, many of these charges were dropped. Democrats now seem cautious about crypto, aiming to minimize risks. Though, this approach could alienate the 50 million crypto owners, as Van Jones noted.

after a week of negotiations, the GENIUS Act failed due to Republicans’ rush to pass the bill, ignoring Democrats’ request for more time. This highlights the need for bipartisan cooperation in crypto policy.

Democrats Clash with Republicans Over Crypto Legislation

Democrats and Republicans are at odds over the GENIUS Act, a crypto bill that has sparked controversy. Jeff Park of Bitwise argues that the bill isn’t as radical as it seems, with high requirements for stablecoin issuers. Though, Democrats, including Sen. Elizabeth Warren, claim it lacks safeguards against corruption.

Warren and other Democratic leaders are concerned about potential conflicts of interest. According to the New York Times, Trump’s family could profit from a $2 billion stablecoin transaction involving an Abu Dhabi investment fund. This has raised eyebrows and prompted a probe by Sen. Richard Blumenthal.

Blumenthal initiated an investigation into Trump’s crypto business, citing an “unprecedented conflict of interest.” He requested records from companies linked to Trump’s crypto ventures, including Fight Fight Fight LLC and World Liberty Finance.

Democrats are also highlighting the disparity in crypto profits. Chainalysis data shows that just 58 wallets have earned over $10 million each from Trump’s memecoin, totaling $1.1 billion in profits.Simultaneously occurring, 764,000 small holders have lost money.

SEC Commissioner Caroline A. Crenshaw, a Democrat, views cryptocurrencies as securities, hindering crypto businesses. Her tenure ends this year,but her stance may represent democratic views on crypto for the remainder of 2025.

Republicans, though, seem united on crypto progressivism. They want to move legislation forward, despite concerns about Trump’s crypto ventures.The debate continues as both parties grapple with the future of crypto regulation.