Cryptocurrencies under fire: Democrats want to block Trump

Cryptocurrencies under fire: Democrats want to block Trump

An event called Crypto Week has begun in Washington to push for the passage of three key crypto bills. However, the opposition in the form of the Democrats has responded with its own counter-week called Crypto Corruption Awareness Week, highlighting possible efforts to use the crypto industry for political purposes. Representative Maxine Waters, along with Republican Stephen Lynch and others, are pushing for measures that would severely limit the ability of sitting presidents, members of Congress, and their families to engage in the crypto-industry. But experts doubt that the real motive is to fight corruption.

As part of their Crypto Corruption Awareness Week, Democrats are drawing attention to former President Donald Trump's activities in the cryptoworld. In a July 13 press release, they claim that Trump has involved himself in speculation and fraud that they say could threaten the financial stability of Americans. They mention, for example, his involvement in the memecoin "Official Trump", which they say was intended to cause losses of several billion dollars.

The Democrats also claim that Trump's work with cryptocurrencies is a de facto unregistered security and thus violates securities law. They also argue that his offers to attend dinners with the president or make large investments are a gateway for foreign influence and corruption, which is seen as a serious threat to national security.

At the end of the Democrats' call, they urge voters to reject the CLARITY and GENIUS Acts and support the "Stop TRUMP in the Crypto Act" of 2025, which would prohibit sitting presidents, vice presidents, or members of Congress from engaging in crypto-business.

Trump's crypto business: scandals, conflicts of interest and profits

Trump's involvement in the cryptospace has elicited mixed reactions. Some crypto-advocates believe his involvement can bring about a revival of the sector and greater openness, while others, including Trump supporters, criticize his conflicts of interest and abuse of influence for personal gain. Evidence of this can be seen in the massive sale of the MELANIA token, where over a third of the supply was sold in the minutes before launch, making the group of traders nearly $100 million.

The investigation revealed that the Trump family has extensive interests in the crypto world, including mining company American Bitcoin, stablecoins issued by WLFi, and tokens like MELANIA. According to Forbes, Trump has made over a billion dollars in profits through his crypto businesses alone. Critics point to conflicts of interest and potential machinations that could undermine trust in cryptocurrencies and the political arena.

Is the Democrats' motive really just?

While Democrats claim their goal is to protect Americans from corruption and fraud, some analysts and observers have a different view. Scott Melker, an investor and host of the Wolf of All Streets podcast, believes the move is more about protecting big financial institutions and banking lobbies, not consumers or ordinary cryptocurrency users.

It is clear that the crypto-industry is not only technically complex but also politically sensitive at the moment. And while the Democrats are trying to stand up to the potential abuse of cryptocurrencies by elites, their real motivations and goals remain a matter of debate and speculation.

Conclusion: Politics and cryptocurrencies - a complex game of interests

As we approach a key legislative period and the intensity of the debate increases, it is clear that cryptocurrencies have become not only a technical phenomenon, but also a political battleground. Democrats are trying to block the former president's influence in the crypto business and prevent possible corrupt practices, while Trump and his allies are using cryptocurrencies to further their interests.

The future of this conflict will likely depend on how a compromise between regulation and innovation can be found, and what laws ultimately pass through parliament. But one thing is certain - cryptocurrencies remain not only a financial but also a tool of power that can fundamentally influence the American political landscape.

*This is not an investment recommendation.

Coingarage Team