President Donald Trump and his family have reaped hundreds of millions from their venture into crypto, in what a report from Democrats on the House Judiciary Committee characterized as exploitation of the president’s political power for personal gain.
“We don’t know where all the money is coming from yet, but America has never seen corruption on this scale take place inside the White House,” said Representative Jamie Raskin, the ranking Democrat on the committee that oversees the U.S. legal system. The report released this week from the minority party “shows how Trump’s so-called ‘pro-crypto agenda’ is just one more Trump family self-enrichment plan, built on pay-to-play deals and corrupt foreign interests seeking secret channels of access and influence.”
The document synthesizes the political conflicts of interest posed by some Democrats as a central pushback on the crypto industry’s U.S. policy efforts. And it arrives at a critical juncture, when the status of the Senate’s market structure bill for crypto is immersed in close negotiations among lawmakers and hasn’t yet emerged for markups in the two Senate committees that would need to advance the legislation.
At a time that Congress is also debating Republican efforts to reduce U.S. healthcare spending and limit social services, the report highlights the personal influx in wealth apparently enjoyed by the president and his family.
“He has built this wealth from the Oval Office by steering investment to his family firm, shielding his investors from federal fraud and securities investigations and prosecutions, bilking his political base and degrading the federal agencies ordinarily responsible for investigating bribery and tracking known bad actors online,” the report contended.
Trump’s Press Secretary, Karoline Leavitt, responded with a statement denying any conflicts and arguing the administration is fostering innovation.
“The media’s continued attempts to fabricate conflicts of interest are irresponsible and reinforce the public’s distrust in what they read,” she said in a statement sent to CoinDesk. “Neither the president nor his family have ever engaged, or will ever engage, in conflicts of interest. Through executive actions, supporting legislation like the GENIUS Act, and other common-sense policies, the administration is fulfilling the President’s promise to make the United States the crypto capital of the world by driving innovation and economic opportunity for all Americans.”
In the past, officials representing Trump have routinely denied that he’s conflicted over crypto, and said that the beneficial incoming policies will help all Americans, not just the president’s family.
The crypto sector’s U.S. lobbying aims — focusing on obtaining a friendly regulatory regime — have made significant gains under the Trump administration, including through a new stablecoin law this year and at regulatory agencies trying to implement pro-crypto policy. But the industry’s close ties to Trump and Republican lawmakers may leave it vulnerable if next year’s midterm congressional elections swing the House of Representatives back into Democratic control.
Democratic lawmakers have been more split than Republicans on whether to support crypto regulations. One of their central sticking points is the vulnerability of the industry to illicit finance, and they’ve also negotiated for and even sought to legislate a ban on senior government officials profiting off of digital assets businesses. In the latter argument, they’ve consistently argued that Trump is allowing foreign nationals and those with criminal ties to potentially get close to the White House and influence policy while they spend millions to benefit Trump’s business interests (such as World Liberty Financial Inc.) or his aims in office (such as his presidential library, inaugural activities and the controversial construction of a White House ballroom).
“Over the course of his second administration, President Trump has embarked on a singleminded, brazen campaign to pump up the cryptocurrency industry in which he is now a key player,” according to Raskin’s report.
Read More: Sen. Warren Keeps Pressure on Trump Crypto Ties as Market Structure Bill Negotiated
