During a recent hearing in the U.S. Congress on digital assets, Democrats left the session, accusing Republicans of ignoring the conflict of interest involving Donald Trump. The primary reason for the disagreement was his connections to the crypto industry, including the launch of the TRUMP meme coin and the promotion of projects through his family.
Partisan Divide
Maxine Waters, the vice-chair of the House Financial Services Committee, stated that Republicans were “legitimizing corruption” by refusing to discuss Trump’s influence on crypto regulation. In response, Republicans changed the hearing format to a roundtable discussion, continuing the debate without the Democrats’ participation.
Republican French Hill suggested focusing on creating a regulatory framework for the crypto market, avoiding comments on Trump’s connections to the industry, claiming that Democrats were “politicizing” the process.
Democrats stated that they would not support the stablecoin bill unless it included strong anti-money laundering measures and restrictions on foreign issuers. Waters emphasized that the launch of the USD1 stablecoin by Trump’s family project was unacceptable.
MEME Act Bill
Senator Chris Murphy introduced a bill prohibiting U.S. federal officials, including Trump, from promoting meme coins for personal gain. This bill, known as the MEME Act, is aimed at preventing the use of public office for enrichment through digital assets. Murphy criticized the TRUMP meme coin, launched before Trump’s inauguration, calling it an example of corruption.
Congressman Sam Liccardo supported the bill, stating that Republicans remain silent while Trump uses the White House for personal enrichment. Financial policy expert Amanda Fisher pointed out that cryptocurrencies are often used for fraud, and officials should not profit from them.
Requests for Investigation
Senator Richard Blumenthal has launched an investigation into Trump’s potential conflict of interest, sending requests to companies connected to his crypto projects. He demanded that they disclose information about finances, ownership structure, and measures to prevent conflicts of interest.
Blumenthal also expressed concern that the launch of the TRUMP token was used to manipulate its price and stimulate sales after interest in the project waned. He noted that Trump’s family had gained substantial profits, and cooperation with foreign investors could pose a national security threat.
Upcoming Requirements and Consequences
The companies are required to provide documents about ownership structure and financial flows by July 27. Senator Blumenthal stated that Trump’s connections to crypto projects and his attempts to use the White House to increase the value of tokens represent an unprecedented scheme of influence for money.
