Efforts to pass crypto laws in the US Senate have hit a wall. A $2 billion deal involving former President Donald Trump has sparked major ethical concerns.
Senators Elizabeth Warren and Jeff Merkley sent a letter on May 5 to the Office of Government Ethics. They asked for an urgent investigation into Trump’s ties to UAE-backed MGX, crypto exchange Binance, and World Liberty Financial (WLFI). They warned that the deal may break federal bribery laws and the Constitution’s Emoluments Clause.
At the core of the controversy is WLFI’s USD1 stablecoin. Reports say MGX chose it for its $2 billion investment into Binance. Lawmakers say the deal may benefit Trump and his allies personally, raising fears of foreign influence.
Adding fuel to the fire, Trump hosted a $1.5 million-per-plate fundraiser on May 5 at his Virginia golf club. This followed another $1 million-per-plate event for his MAGA super PAC days earlier. He is also planning a dinner with top holders of the TRUMP memecoin on May 22.
These events come just as the Senate prepares to vote on the GENIUS Act, a key stablecoin bill. However, Democrats are demanding more hearings. Some say Trump’s crypto ties are hurting bipartisan efforts.
Senate Majority Leader John Thune said he’s open to changes in the bill. But internal GOP debate continues, with Senator Rand Paul unsure about support.
Meanwhile, Representative Maxine Waters plans to block a Republican crypto event set for May 6.
