Editor's Note: The Trump family is suspected of profiting from cryptocurrencies by issuing stablecoins and collaborating with an Abu Dhabi fund, sparking strong opposition from Senate Democrats. The originally promising GENIUS Act has been stalled, with multiple Democrats demanding amendments or a thorough investigation of potential corruption, concerned about national security and money laundering issues.
Below is the original content (slightly edited for readability):
Trump's cryptocurrency transactions have triggered a strong backlash in the Senate and calls for investigation.
Senate Democrats are demanding modifications to pending cryptocurrency legislation, partly due to increasing evidence that the Trump family is leveraging their network and Donald Trump's power to profit from cryptocurrency transactions.
The opposition escalated further after a closed-door meeting of Senate Democrats last week. Democratic leader Chuck Schumer told his colleagues they should not promise support for the so-called "GENIUS Act" - a bill supported by the crypto industry.
The bill, which was expected to pass with bipartisan support in recent months and was scheduled for a procedural vote this week, faced concerns from Democratic senators who pointed out that the legislation would directly benefit Trump family's crypto businesses, based on a New York Times report.
According to lawmakers, one of their concerns is that the crypto company "World Liberty Financial" associated with Trump recently reached an agreement with the UAE risk fund supported by the Abu Dhabi government to accept a $2 billion deposit - a story disclosed by the New York Times last week.
"This is an influence trade, a conflict of interest, and a level of corruption we've never seen before," said Oregon Democratic Senator Jeff Merkley in an interview, reiterating his statement in the meeting, "This behavior must stop."
Massachusetts Democratic Senator Elizabeth Warren also urged other Democrats to take a stance on this matter.
Senator Elizabeth Warren stated in a declaration: "This Senate legislation will make it easier for the president and his family to line their pockets. This is blatant corruption, and no senator should support it."
These moral concerns intensified the Democrats' broader unease about the bill, with some senators pointing out additional issues, believing the legislation lacks sufficient anti-money laundering protections.
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Just last week, a founder of World Liberty announced at a crypto conference that a venture capital fund supported by the Abu Dhabi government would use USD1 tokens worth $2 billion for a major industry transaction—equivalent to directly injecting massive funds into an enterprise led by the U.S. presidential family.
The New York Times' recent report on the Abu Dhabi transaction and other conflicts of interest of World Liberty quickly spread on Capitol Hill. According to documents obtained by The New York Times, Senate Democrats last week distributed a research memo, citing these investigations and fiercely criticizing the legislation as a tool for the Trump family to "corruptly profit through a cryptocurrency plan". California Representative Maxine Waters even read out a related article from the newspaper in full during a committee hearing.
At a Senate Democratic meeting, Senate Majority Leader Chuck Schumer expressed concerns about certain language in the bill. According to congressional aides, he was particularly concerned that Tether, a foreign company, might issue stablecoins in the United States through this bill without needing to comply with most regulatory provisions. He urged Democratic lawmakers to carefully review the confidential briefing materials about Tether provided by the banking committee.
A spokesperson for Tether did not respond to a request for comment. Axios had previously partially reported the content of this meeting.
Senate aides said on Monday that lawmakers from both parties are continuing to negotiate in response to some of the Democrats' concerns. Several lawmakers, including the bill's co-sponsor, New York Democratic Senator Kirsten Gillibrand, are working to find a viable path to pass the bill.
But Trump shows no signs of backing down. On Monday, he posted a portrait illustration of himself raising a fist on his social platform Truth Social, calling on supporters to buy a cryptocurrency called $Trump. This is one of his latest ventures, which has already brought in over $100 million for his family and partners.
Additionally, on Monday evening, a fundraising dinner hosted by crypto executives and supporting a pro-Trump Super PAC will be held at Trump's National Golf Club in Virginia, with each participant required to donate $1.5 million.
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