Senate skips crypto hearing as Democrats withdraw participation; Senate initiates investigation into potential corruption involving Trump
In the world of cryptocurrencies, the activities of the Trump family's cryptocurrency firm, World Liberty Financial (WLF), have been under scrutiny. The Wall Street Journal has alleged that DWF Labs, a partner of WLF, participated in pump and dump schemes.
The launch of WLF's USD1 stablecoin has been a point of contention, with concerns raised about its potential impact on recent crypto legislation. The upcoming vote on the GENIUS Act could serve as a litmus test for whether Trump's crypto interests could hinder the passage of crypto legislation.
Senator Richard Blumenthal has opened a preliminary investigation into Trump-linked cryptocurrency activities, specifically the $TRUMP memecoin and WLF. His investigation targets potential conflicts of interest and pay-to-play schemes in Trump's crypto dealings.
Justin Sun, the top holder of $TRUMP, holds nearly 1.4 million coins. Over the weekend, some Democrats withdrew support for the GENIUS Act, a Senate bill aimed at regulating stablecoins, citing concerns about the intersection of the Trump family's crypto holdings and recent legislative actions.
The Trump administration, including President Trump, has influenced cryptocurrency regulation, culminating in Trump signing the GENIUS Act, a major crypto regulatory law, in July 2025. Critics such as Rep. Maxine Waters and Senator Elizabeth Warren have warned that such legislation could disproportionately benefit Trump’s inner circle and enable corruption.
White House officials, including Trump, hold significant crypto assets connected to government initiatives like the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile, raising concerns over potential conflicts of interest. However, the White House maintains there is no conflict of interest, noting that Trump's assets are held in a trust managed by his children.
The joint hearing on digital assets held yesterday by the House Financial Services Committee and the Agriculture Committee saw Representative Maxine Waters objecting to the hearing due to the President's ownership of cryptocurrency and his oversight of related agencies.
Reports suggest that some Trump-linked stablecoin holders are able to attend a Presidential dinner, and others get a White House tour. The Fight Fight Fight letter states that President Trump's financial entanglements with the $TRUMP coin and attempts to use the White House to boost its value could be a pay-to-play scheme.
As of mid-2025, there is no publicly confirmed formal investigation specifically led by Senator Richard Blumenthal or other U.S. lawmakers into the Trump family's cryptocurrency activities or potential conflicts of interest related to them. However, concerns and criticisms have been raised by several members of Congress and watchdog groups regarding the intersection of the Trump family's crypto holdings and recent legislative actions.
- The investigation led by Senator Richard Blumenthal targets potential conflicts of interest and pay-to-play schemes in Trump's crypto dealings, including the USD1 stablecoin launched by World Liberty Financial and the $TRUMP memecoin.
- The upcoming vote on the GENIUS Act could serve as a litmus test for whether Trump's crypto interests could hinder the passage of crypto legislation, as some Democrats have withdrawn support citing concerns about the intersection of the Trump family's crypto holdings and recent legislative actions.
- The White House maintains that there is no conflict of interest concerning the significant crypto assets held by the Trump administration, including President Trump, which are kept in a trust managed by his children.
- The joint hearing on digital assets held by the House Financial Services Committee and the Agriculture Committee saw Representative Maxine Waters objecting to the hearing due to the President's ownership of cryptocurrency and his oversight of related agencies.
- Reports and letters from watchdog groups, such as Fight Fight Fight, have raised concerns over potential pay-to-play schemes related to Trump-linked stablecoin holders, who are able to attend a Presidential dinner or get a White House tour.
