Trump's crypto ventures cause tensions to bubble over as Democratic lawmaker scuttles key hearing
FILE PHOTO: Republican presidential nominee and former U.S. President Donald Trump gestures at the Bitcoin 2024 event in Nashville, Tennessee, U.S., July 27, 2024. REUTERS/Kevin Wurm/File Photo
(Reuters) -Tensions on Capitol Hill over President Donald Trump's various cryptocurrency ventures escalated on Tuesday and threatened to derail the digital asset sector's hope of legislation by the end of this year as a top Democratic lawmaker stalled efforts to debate a bill.
Although Congress had appeared likely earlier this year to pass legislation governing digital assets for the first time, Democrats have grown increasingly frustrated as Republican Trump and his family members have promoted their personal crypto projects.
Representative Maxine Waters' objection to a joint hearing scheduled for Tuesday effectively cancelled proceedings between the House Financial Services Committee and the House Agriculture Committee, which were due to discuss creating a new legal regime for cryptocurrencies.
Trump's crypto ventures include a so-called meme coin called $Trump,launched in January, and a business called World Liberty Financial, a crypto company owned partly by the president. Trump on social media has promoted a private dinner later this month for the top holders of his meme coin, along with a "special VIP tour" for a select few investors.
The business endeavors have drawn criticism from government ethics experts and political opponents over potential conflicts of interest, especially because Trump courted cash from the crypto industry on the campaign trail and pledged to overhaul regulations for the sector.
They have also put further legislation this year related to cryptocurrency in doubt as some lawmakers have expressed concern about self-dealing.
"I cannot in good faith agree to such a hearing to discuss crypto market structure while Republicans refuse to stop or even acknowledge Trump's abuse of power," Waters said in a statement ahead of the scheduled hearing.
Representative French Hill, the Republican chairman of the House Financial Services Committee, said that Waters objecting to Tuesday's hearing"has thrown partisanship into what has historically been a strong, good, working bipartisan relationship."
In a statement, Anna Kelly, the White House deputy press secretary, said there were no conflicts of interest and that Trump's assets are in a trust managed by his children.
'President Trump is dedicated to making America the crypto capital of the world and revolutionizing our digital financial technology," she said.
Still, Trump's crypto arrangements have threatened to derail legislation that was once considered near certain by analysts and lobbyists to pass this year. Congress is also debating a bill to create a regulatory framework for stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg.
Senate Democrats have expressed concerns about the bill, especially after World Liberty Financial announced last week that its stablecoin would be used by an Abu Dhabi investment firm for its $2 billion investment in crypto exchange Binance.
The White House wants that bill to pass the Senate by next week, according to a source familiar with the discussions. But some Democrats said on Saturday that Republicans had failed to negotiate on stronger provisions related to foreign stablecoin issues and anti-money-laundering protections, and that they would be unable to support the bill as it currently stands.
The stablecoin bill could still pass the Senate, in which Republicans hold the majority, but could pose a setback for the crypto industry which has tried to portray digital asset regulation as a bipartisan issue.
(Reporting by Hannah Lang in New York; Editing by Pete Schroeder and Matthew Lewis)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
an hour ago
- New Straits Times
Bursa opens higher, tracks Wall Street gains
KUALA LUMPUR: Bursa Malaysia opened higher today, tracking Wall Street's strong performance last Friday, supported by stronger-than-expected US jobs data that alleviated concerns over the economic outlook. At 9.25am, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 2.33 or 0.15 per cent higher at 1,519.12 from Friday's close of 1,516.79. The benchmark index opened 1.27 points better at 1,518.06. Market breadth was positive, with gainers outpacing losers 261 to 160, while 300 counters were unchanged, 1,618 untraded and 21 suspended. Turnover stood at 328.6 million units valued at RM173.79 million. Rakuten Trade Sdn Bhd said the FBM KLCI failed to sustain its impressive performance on Thursday as the index stuttered to end just above the 1,515 level. The firm noted that the trading activities remained muted, as seen from the pathetic daily volume, which dwindled to below the two billion shares mark. "This could be attributed to the widespread downgrades of the benchmark index target for 2025 by the research fraternity recently. "As such, we expect the index to hover within the 1,510 to 1,520 range today," the firm added. On US stocks, Rakuten said the Wall Street closed broadly firmer on the back of higher-than-expected nonfarm payrolls, hence easing concerns of an imminent economic slowdown in the US. On the flipside, the firm noted that Tesla shares continue to slide amid the sparring match between Elon Musk and US President Donald Trump. Meanwhile, the US 10-year yield edged higher to 4.506 per cent. As for Hong Kong, Rakuten said the Hang Seng Index declined to below the 23,800 level amid some profit takings as the Xi-Trump phone call failed to address any overriding concerns, as more fresh catalysts are required to prop up the market.
New Straits Times
an hour ago
- New Straits Times
Gold falls on strong US jobs data and improved trade outlook
BENGALURU: Gold prices fell on Monday as a stronger-than-expected US jobs report cooled expectations of interest rate cuts from the Federal Reserve, while optimism over easing trade tensions between the US and China weighed on the bullion's safe-haven demand. Spot gold fell 0.2 per cent to US$3,303.19 an ounce, as of 0056 GMT. US gold futures fell 0.7 per cent to US$3,323.40. Three of US President Donald Trump's top aides will meet with their Chinese counterparts in London on Monday for talks aimed at resolving the trade dispute between the two largest economies that has kept global markets on edge. The US economy added 139,000 jobs in May, surpassing analysts' expectations, while the unemployment rate was unchanged at 4.2 per cent, the Labour Department said. Wage growth also exceeded forecasts, dampening the likelihood of imminent rate cuts. Investors have scaled back bets on rate cuts, now anticipating one reduction in October. Trump, meanwhile, said that a decision on the next Federal Reserve chair would be announced soon, adding that a "good Fed chair" would lower interest rates. The US dollar index edged slightly up, making gold more expensive for overseas buyers. On the geopolitical front, Trump's order banning citizens of 12 countries from entering the US goes into effect on Monday. Russia stated on Sunday that its forces had advanced to the edge of Ukraine's Dnipropetrovsk region amid tensions over peace talks and the repatriation of soldiers' remains. Gold, often seen as a hedge against inflation and geopolitical uncertainty, could face pressure from higher interest rates, which reduce its appeal as a non-yielding asset. Elsewhere, spot silver remains unchanged at US$35.94 per ounce, platinum fell 0.5 per cent to US$1,163.10, while palladium was down 0.5 per cent to US$1,041.75.
Free Malaysia Today
an hour ago
- Free Malaysia Today
White House aide calls Los Angeles anti-ICE protests an ‘insurrection'
US President Donald Trump has pledged to deport record numbers of people in the country illegally. (AP pic) WASHINGTON : Senior White House aide Stephen Miller on Saturday condemned protests in downtown Los Angeles against federal immigration raids as an 'insurrection' against the US. Helmeted police in riot gear engaged in a tense confrontation with protesters on Friday night after Immigration and Customs Enforcement (ICE) agents conducted enforcement operations in the city and arrested at least 44 people on immigration violations. 'An insurrection against the laws and sovereignty of the United States,' Miller, the White House deputy chief of staff, wrote on X. Miller, an immigration hardliner, was responding to video footage on X showing a large number of people protesting in downtown Los Angeles. The Los Angeles police department (LAPD) said it had not made any arrests related to the demonstration. FBI deputy director Dan Bongino posted on X that they were reviewing evidence from the protests. 'We are working with the US Attorney's Office to ensure the perpetrators are brought to justice,' Bongino said. 'The Right to assemble and protest does not include a license to attack law enforcement officers, or to impede and obstruct our lawful immigration operations.' President Donald Trump has pledged to deport record numbers of people in the country illegally and lock down the US-Mexico border, with the White House setting a goal for ICE to arrest at least 3,000 migrants per day. But the sweeping immigration crackdown has also included people legally residingin the country, including some with permanent residence, and has led to legal challenges. Television news footage earlier on Friday showed caravans of unmarked military-style vehicles and vans loaded with uniformed federal agents streaming through Los Angeles streets as part of the immigration enforcement operation. 'Forty-four people (were arrested) on immigration charges,' Yasmeen Pitts O'Keefe, a spokesman for homeland security investigations told Reuters on Saturday. The LAPD did not take part in the immigration enforcement. It was deployed to quell civil unrest after crowds protesting the deportation raids spray-painted anti-ICE slogans on the walls of a federal court building and gathered outside a nearby jail where some of the detainees were reportedly being held. Los Angeles mayor Karen Bass in a statement condemned the immigration raids. 'I am deeply angered by what has taken place,' Bass said. 'These tactics sow terror in our communities and disrupt basic principles of safety in our city. We will not stand for this.'
