Trump Meme Coin Empire Disrupts Crypto Regulation Talks, Democrats Warn of $2.9B “Scheme”

Democrats claim Trump crypto projects undermine trust in financial regulation, accusing him of profiting billions while Congress debates key digital asset legislation.

During a pivotal House hearing on digital asset regulation, Democrats voiced sharp criticism of former President Donald Trump’s growing involvement in the crypto space, alleging that his ventures are eroding legislative focus and enabling personal financial gain.

Representative Maxine Waters (D-CA), ranking Democrat on the House Financial Services Committee, condemned Trump’s Solana-based meme coin and newly launched crypto wallet, saying they “put Americans’ money in his digital wallet while gutting the regulators meant to protect families from fraud.” Her remarks came as Congress deliberated the Digital Asset Market Clarity Act — legislation designed to categorize digital assets as either securities or commodities.

Waters emphasized that Trump’s recent crypto activities are making it increasingly difficult for lawmakers to conduct unbiased discussions on crypto regulation. She asserted that Trump and his family have amassed an estimated $2.9 billion in wealth through various crypto schemes, including NFTs, a stablecoin, a DeFi project, and a controversial private dinner for $TRUMP token holders.

That dinner, hosted for the top 220 holders of Trump’s meme coin, stirred backlash last month and prompted Democratic lawmakers, led by Waters, to walk out of a related hearing. At this week’s session, Waters again mocked the event’s exclusivity and apparent superficiality. “What did they get? Walmart steak, Costco-freezer halibut, recycled talking points, and just 20 minutes of Trump time,” she said. “I guess you get what you pay for.”

Though the Clarity Act has received bipartisan support according to its sponsor, Rep. French Hill (R-AR), Wednesday’s hearing was overshadowed by concerns that Trump’s ventures represent a dangerous blend of political influence and financial opportunism.

Timothy Massad, former CFTC chair under President Obama, testified that Trump’s potential financial stake in future crypto legislation creates a serious conflict of interest. “He is making billions of dollars selling meme coins and stablecoins, investing in crypto exchanges, wallets, and Bitcoin mining — all of which are potentially subject to the laws this committee is writing,” said Massad. “If any member of this committee did any of that, you would all be outraged.”

Meanwhile, Congress is also revisiting stablecoin regulation alongside the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill that previously garnered support from 71 Democrats but ultimately failed to pass.

As the 2024 election cycle heats up, crypto appears poised to remain a central campaign topic — not only as a technological revolution but also as a symbol of how deeply financial power and politics are now intertwined.

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