President Donald Trump’s $1.2 billion crypto plans are under threat as Democrats stand ready to block key bills which seek to regulate the crypto industry. The action follows fraud charges against Trump-linked projects. In their sights are the GENIUS Act and the CLARITY Act, termed by the Democrats as devastating and empowering of possible scams.
Legislative Showdown Ahead
From July 15, a “crypto showdown” will be introduced in the U.S. Congress. The GENIUS Act has already passed the Senate and awaits consideration in the House. If it is approved without any amendments, it goes straight to the President. Any amendment, though, could hold it back.
Democrats, spearheaded by Maxine Waters and Stephen Lynch, have issued an “anti-crypto corruption week,” criticizing Trump’s businesses for egregious financial abuse. They believe that these bills could further widen the existing deficit in the crypto market, which in their opinion has already resulted in users’ huge losses.
Trump’s Crypto Businesses and Market Influence
Trump’s involvement in the crypto space has increased tenfold over the past few months. His stablecoin and memecoin projects have contributed $620 million to his wealth, as per the Bloomberg Billionaires Index. Critics cite the Official Trump memecoin as evidence of financial danger involved with such investments.
Further, Trump’s media group, Trump Media & Technology Group, is venturing into the crypto market, and it has raised $2.5 billion to be invested in Bitcoin and other assets. This indicates a change of heart by the president regarding digital currency, from previous demonization of Bitcoin as a “scam.”
Binance’s Role in Trump’s Crypto Plans
New updates confirm that Binance, the global leading exchange for digital assets, has led the pack in keeping Trump’s crypto plans secret. Binance was responsible for developing the code behind USD1, a stablecoin tied to Trump’s World Liberty Financial Inc. The collaboration has been in the public eye, particularly after Binance CEO Changpeng Zhao requested a presidential pardon in the face of lawsuits.
However, Changpeng “CZ” Zhao, the co-founder of Binance, has publicly condemned the claims. In a post on X, Zhao referred to the article as a “hit piece” filled with inaccuracies, stating that he might pursue legal action for defamation.
The dollar capital of such businesses is monumental. Binance’s marketing of USD1 to its 275 million customers has given it lots of visibility. Binance currently holds more than $2 billion of USD1, which is earning Trump tremendous interest income, estimated in tens of millions of dollars every year.
Future Outlook
Despite the delays, Republicans seem confident of securing approval for the crypto bills with White House aide Bo Hines affirming it’s a “huge week ahead.” But the process remains unclear as Democrats are keen on blocking legislation they see as permitting Trump’s suspected financial improprieties.
As events unfold, it will be important to track the legislative history of these bills. The result could have profound implications for Trump’s crypto business and the general cryptocurrency sector.
