The world of cryptocurrency is exploding, and US lawmakers are scrambling to keep up. A recent House Financial Services Committee meeting highlighted the urgent need for clearer crypto regulations, a situation made even more complicated by President Trump’s family’s deep involvement in the crypto space.
Bipartisan Agreement on Crypto Regulation
Lawmakers from both parties agree: We need better rules for digital assets. The current system, they say, is a mess. Specifically, they’re pointing to the SEC’s use of the Howey Test, which apparently isn’t working well for secondary market transactions. The general feeling is that clearer rules would benefit not just the crypto industry, but other sectors affected by crypto technology. One senior lawmaker even stated, “We need to stop relying on the courts to define our financial future.”
The Trump Family’s Crypto Empire
Adding fuel to the fire is the Trump family’s significant involvement in various crypto projects. Reports indicate that President Trump and First Lady Melania Trump are linked to meme coins and a DeFi project called World Liberty Financial, which recently launched a dollar-backed stablecoin called USD1. These ventures have reportedly raked in at least $800 million in fees. This has some Republicans admitting that the Trump family’s crypto activities are making the whole regulatory process much more difficult. The situation creates a major conflict of interest: the President’s personal financial interests could heavily influence the regulations his administration is trying to create.
A New Sheriff in Town?
Paul Atkins’ confirmation as the new SEC Chair is being viewed by some pro-crypto lawmakers as a potential turning point. They hope this signals an end to years of regulatory gridlock. However, others remain cautious, arguing that lasting change depends more on Congress passing new laws than on who’s running the SEC. The committee is focused on creating legislation that clarifies when digital assets should be considered commodities.
Trump’s Coin Launch and Conflict of Interest Claims
Meanwhile, President Trump is promoting his own cryptocurrency. A massive batch of Trump digital coins—around 40 million, worth over $300 million—is about to hit the market. His 2024 financial disclosure shows that a company connected to the Donald J. Trump Revocable Trust holds some of these coins. More Trump coins (TRUMPUSD) are set to be released over the next three years, totaling 800 million tokens. The White House claims that Trump’s assets are held in a trust managed by his children and that there are “no conflicts of interest.”
