Donald Trump’s foray into the world of crypto isn’t just making headlines in financial circles. It’s now lighting political fires on Capitol Hill. What started as a stablecoin project tied to Trump-linked firms has ballooned into a full-blown ethics controversy, with Senate Democrats calling it a national security risk and introducing legislation to shut it down. The End Crypto Corruption Act would prevent senior government officials from holding or promoting crypto assets tied to their decisions.
The $2 Billion Stablecoin Deal That Started It All
At the center of the storm is World Liberty Financial, a firm affiliated with the Trump family. According to reports, it secured a $2 billion investment from a Dubai-based company to back a Trump-branded stablecoin. The token is reportedly designed for use on Binance, one of the world’s largest crypto exchanges.
Dems Drop Bomb on Trump’s Crypto Empire
Senate Dems just dropped the End Crypto Corruption Act to ban presidents & fam from launching coins.
They’re coming for Trump’s $2B stablecoin deal linked to Abu Dhabi—plus his meme coin already made $320M in fees.
Progressives… pic.twitter.com/L0e4uvZ5pP
— The Meme Times
(@TheMeme_Times) May 7, 2025
The issue? Trump is back in the White House. So a sitting president with a financial interest in a global crypto project has raised more than a few eyebrows. Critics are calling it a dangerous conflict of interest, especially since the deal involves foreign capital and major platforms like Binance, which has had its own share of regulatory headaches.
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Democrats Respond With the “End Crypto Corruption Act”
In response, Senators Jeff Merkley and Chuck Schumer introduced the End Crypto Corruption Act. It’s a straightforward proposal: if you’re the president, vice president, a senior federal official, or a member of Congress, you and your family can’t profit from meme coins, stablecoins, or any crypto assets you’re influencing.
Merkley didn’t hold back. He called the situation “profoundly corrupt” and warned that letting it slide could open the floodgates for backdoor deals and political pay-to-play in the crypto space.
The GENIUS Act Hits a Wall
The broader bill that all this drama threatens is the GENIUS Act, a bipartisan piece of legislation that was supposed to create a legal framework for stablecoins. It started off strong, with backing from both sides of the aisle. But now, Senate Democrats are pulling their support.
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Senator Elizabeth Warren, who’s long been skeptical of crypto, said the bill in its current form doesn’t go far enough to protect against fraud or money laundering. With the Trump stablecoin deal casting a shadow, she and others say the timing is just too suspicious.
Unless the bill is revised to include stronger oversight and accountability, its chances of passing look slim.
Political Fallout Spills into the House
The controversy even made its way to the House. During a crypto regulation hearing, Representative Maxine Waters staged a walkout, accusing Republicans of turning a blind eye to what she described as blatant corruption. The message from Democrats is clear: they see this as more than a crypto issue. It’s a test of ethical boundaries in government.
Trump’s team has pushed back, insisting that the stablecoin plan was in motion before he returned to office. But that hasn’t eased the concerns swirling in D.C.
So, What Can We Expect Now?
Crypto and politics have officially collided in dramatic fashion. What was once a niche financial experiment is now at the center of a legislative standoff. Whether Congress tightens the rules or lets this ride could shape how elected officials interact with crypto for years to come.
One thing is certain: the age of crypto scandals in politics has arrived, and it’s not going quiet anytime soon.
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Key Takeaways
- Senators are targeting Trump’s $2 billion stablecoin deal with new legislation, citing national security and ethics concerns.
- The stablecoin, backed by World Liberty Financial and foreign investors, is raising alarms due to Trump’s role as a sitting president.
- Senators Merkley and Schumer introduced the End Crypto Corruption Act to ban top government officials and their families from profiting off crypto they influence.
- Democrats are now withholding support from the GENIUS Act, a previously bipartisan bill meant to regulate stablecoins, demanding stronger protections.
- The controversy has spilled into House hearings, with Rep. Maxine Waters staging a walkout and accusing Republicans of ignoring conflicts of interest.
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