Picture this—Oregon Senator Jeff Merkley is preparing to introduce another one. It would ban presidents, legislators, and their family members from issuing, supporting, or promoting cryptocurrencies. This action comes in direct response to increasing outcry over growing conflicts of interest. The spotlight has been particularly bright on former President Donald Trump’s influence on the crypto market. The proposed legislation would take important steps to address the ethical questions raised by lawmakers’ participation in the burgeoning digital asset space.
Previous post Trump unwisely launched $TRUMP and $MELANIA memecoins in January. On May 7, $TRUMP was trading at a market cap of $2.19 billion and $MELANIA at $179.6 million. These once-prominent cryptocurrencies have all undergone drastic crises. Since then $TRUMP has tanked over 85% and $MELANIA has dropped almost 98% from their all-time high values on January 20.
Trump's engagement with cryptocurrency extends beyond memecoins. His new company, Trump Media & Technology Group, seems poised to accumulate crypto riches, too. They are reportedly planning to launch a Bitcoin exchange-traded fund. Last year, during the height of his 2024 campaign, Trump started releasing collectible NFTs on Solana. This smart contract blockchain platform has experienced several complete network crashes since launching in May 2020. David Sacks, a leading supporter of Solana, has been named Trump’s crypto czar.
The Trump family's connection to cryptocurrencies has faced scrutiny, including a canceled joint committee hearing after Democrats, led by Rep. Maxine Waters, withdrew unanimous consent. Senator Jeff Merkley and Senator Elizabeth Warren have been among the loudest critics of the Trump family’s foray into cryptocurrency.
Their letter to Jamieson Greer, the Acting Director of the Office of Government Ethics. They called out a troubling recent agreement between a Trump-backed crypto company and a foreign-owned crypto exchange. They spoke out about how the merger would have negative impacts. It would allow the Trump and Witkoff families to profit from foreign corruption by making their preferred stablecoin more widely used.
address and curb the corruption that the Trump Administration is potentially engaging in - Sen. Jeff Merkley
In short, a crypto firm whose founder needs a pardon and a foreign government spymaker coveting sensitive U.S. technology plan to pay the Trump and Witkoff families hundreds of millions of dollars. The opportunities for grift — in which the Trump Administration offers favors to the UAE or to Binance in exchange for their massive payouts — are mind-boggling - Sen. Jeff Merkley and Sen. Elizabeth Warren
Congressional Democrats are divided on cryptocurrency regulation. Though many support incentivizing the industry through a consistent and predictable regulatory framework, others are still doubtful.
