A $2 billion crypto deal branded by Trump has raised eyebrows over potential corruption. The President’s access has reportedly been auctioned off to top holders of the $TRUMP coin, with businesses boasting about spending $20 million on it to gain influence. This situation has overshadowed the Senate’s attempt to pass significant crypto legislation aimed at legitimizing parts of the industry. Although the effort failed temporarily, negotiations persist. The bipartisan bill sought to regulate stablecoins, a form of cryptocurrency pegged to the U.S. dollar, which Trump himself offers through his World Liberty Financial venture. Critics argue that the bill legitimizes Trumpian corruption and an industry largely for speculation and untraceable money transfers. Proponents claim it’s the best chance to regulate this aspect of crypto. The GENIUS Act would set standards for backing assets and subject stablecoin issuers under $10 billion to state oversight, though critics highlight potential loopholes. Some Democrats question whether the bill adequately regulates stablecoins or if the government should legitimize these instruments at all. The crypto industry’s political influence has grown, as seen in the Ohio Senate race where a crypto PAC spent $40 million. Senator Kirsten Gillibrand co-sponsored the GENIUS Act, becoming a major industry supporter. Trump’s family involvement in crypto firms like World Liberty Financial has sparked further controversy. Despite initial bipartisan support, the bill hit a snag due to Trump’s vocal promotion of his crypto investments, prompting nine Democrats to demand changes. Observers remain uncertain if the bill will pass, with some suggesting it might be delayed for amendments, while others believe it could be dead for now. Another bill on crypto market structure may take precedence. — new from Talking Points Memo
