Crypto legislation stalls amid growing political tension
Hopes for new U.S. crypto regulations took a hit this week. Congress postponed a key hearing after political controversy surrounding President Donald Trump’s crypto ventures.
Representative Maxine Waters halted a scheduled joint hearing between the House Financial Services and Agriculture Committees. The session was intended to shape new crypto rules.
This delay signals deeper political friction that could derail crypto reform in 2025.
Trump-linked crypto projects fuel controversy
Trump’s increasing involvement in the crypto industry has sparked ethical concerns. He and his family have backed several ventures, including a meme coin named $Trump and a stablecoin via World Liberty Financial.
The former president recently promoted a private dinner for top $Trump holders, adding a VIP tour for elite crypto investors.
Critics warn of serious conflicts of interest. Trump’s dual role as a crypto promoter and presidential candidate raises red flags in Washington.
Democrats raise alarm over crypto self-dealing
Representative Waters voiced strong concerns about holding crypto hearings while Trump’s activities remain unaddressed.
“I cannot in good faith agree to such a hearing,” she said. Waters accused Republicans of ignoring Trump’s misuse of power in the crypto space.
Democrats now worry that self-dealing may taint legislation meant to regulate the crypto industry fairly and transparently.
A once-promising crypto bill now uncertain
Earlier in 2025, momentum for crypto regulation seemed strong. Lawmakers from both parties supported new frameworks for stablecoins and digital assets.
But Trump’s involvement has shifted the tone. Senate Democrats now hesitate to pass legislation perceived as benefiting the former president’s business interests.
The situation has created a legislative impasse that could stall crypto progress indefinitely.
White House defends Trump’s crypto interests
Despite the backlash, the White House maintains that no ethical lines have been crossed. Deputy Press Secretary Anna Kelly said Trump’s assets are held in a trust managed by his children.
She added, “President Trump is dedicated to making America the crypto capital of the world.” Supporters say his crypto push is about economic innovation, not personal profit.
Still, critics argue that mixing political influence with crypto promotion could damage trust in future legislation.
Stablecoin bill also caught in the political crossfire
The Senate is also considering a bill to regulate stablecoins, which are pegged to the U.S. dollar. But controversy around World Liberty Financial’s role in a $2 billion Binance deal has intensified scrutiny.
Senate Democrats claim Republicans haven’t included sufficient anti-money laundering safeguards. As a result, support for the bill is wavering, especially on the left.
The bill may pass the Republican-controlled Senate, but it could face further resistance in the House if partisan tensions continue.
Crypto’s future hinges on bipartisan trust
The crypto industry has worked hard to present regulation as a bipartisan cause. That narrative is now at risk.
Without compromise, crypto legislation may remain stalled, harming investor confidence and slowing U.S. innovation in the space.
For crypto to move forward in Washington, political leaders must restore bipartisan trust — before it’s too late.