The cryptocurrency industry is eagerly anticipating President Donald Trump’s executive order that is expected to pave the way for a more favorable regulatory environment for digital assets. This move is not only crucial for the industry but also has implications for Trump’s own business interests, sparking concerns about potential conflicts of interest among Democrats in the House of Representatives.
The issuance of a Trump executive order on cryptocurrency could potentially boost the value of two key components of Trump’s family business: the crypto venture World Liberty Financial and the TRUMP token, which was launched just before his return to the White House. Gerry Connolly, the leading Democrat on the House Oversight Committee, has called for an investigation into the president’s business ties, citing ethical concerns surrounding the potential conflicts of interest.
“This committee must take immediate action to investigate the grave conflicts of interest that Donald Trump brings to the Office of the President,” wrote Connolly in a letter to the committee’s Republican chairman. However, given the political dynamics and the president’s influence within the Republican Party, formal scrutiny of Trump’s business dealings remains uncertain.
Shortly after Trump’s inauguration, Representative Maxine Waters raised alarm about Trump’s coin, suggesting that it could be used to bypass national security and anti-corruption laws, enabling anonymous transfers of funds to the president and his inner circle. Waters voiced concerns about the potential influence of large corporations, allied nations, and adversaries like Russia and China on a Trump presidency through the token.
Furthermore, Waters highlighted the implications of Trump’s token on the wider cryptocurrency industry, which has been striving for legitimacy and fair treatment in the financial landscape. Despite failed bipartisan efforts to regulate stablecoins in the past, Waters remains a key figure in shaping cryptocurrency policies in the current legislative session.
While Trump’s return to the White House was met with promises of swift action on cryptocurrency, the industry has yet to see tangible benefits from the numerous executive orders signed by the president. The most significant development so far has been the establishment of a crypto task force by the acting chair of the Securities and Exchange Commission, Mark Uyeda.
For more industry insights, check out our article on the SEC’s new crypto task force spearheaded by Hester Peirce.