Senate just passed a crypto bill that could cost Donald Trump millions of dollars
A new landmark bipartisan bill has been passed through the US Senate with an clear majority, as it aims to regulate a new form of cryptocurrency known as stablecoins within the typically unregulated digital market.
One of the biggest selling points and defined characteristics of cryptocurrency as a whole is that it's - at least for the most part - completely unregulated. Unlike traditional global currencies, crypto has no real government involvement and limited consumer protections, meaning that it's prone to rise and fall in the extremes, especially when looking at less established 'meme coins'.
The United States government is looking to change that though as crypto has remained a key priority for the second Trump administration, and a new regulation might open the door for a major shift that could even affect the president himself.
What does the new legislation say about cryptocurrency?
As reported by Fortune, the GENIUS Act introduces the first ever government framework to regulate a form of cryptocurrency known as stablecoins, which are pegged to traditional currencies like the US dollar as a means of stability.
The bipartisan bill passed in the Senate with a vote of 68-30 after a number of Democratic senators voted alongside their Republican opposition, although many on the blue side have raised reservations about key parts of the legislation.
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"We weren't able to include certainly everything we would have wanted," explained Senator Angela Alsobrooks, who was a co-sponsor of the bill, "but it was a good bipartisan effort. This is an unregulated area that will now be regulated."
It offers consumers a stark contrast to the traditional cryptocurrency experience which offers highly volatile behavior, and it has also opened up the door for giants like Walmart and Amazon to potentially introduce stablecoin payment methods.
How does the GENIUS Act affect Donald Trump?
To see how regulation surrounding stablecoins would affect President Trump and his family, you must first understand their current investments in the space.
It's been no secret that Trump has benefitted significantly from cryptocurrency this year, as the presidential meme coin released alongside his inauguration in January caused his net worth to soar, and that has continued throughout the year following key private events.
Where $TRUMP was an unregulated flash in the pan though, seeing significant rises and crashes in a matter of days, the Trump family has also made millions from investments in stablecoin.
They hold a significant stake in World Liberty Financial (WLFI), which has a stablecoin called 'USD1', and earnings of around $57,350,000 have been reported from token sales last year alone.
In theory, heavy regulation surrounding stablecoins as a consequence of the GENIUS Act would hamper their profits, potentially losing them millions of dollars, but a key loophole means that - in its current state - the legislation can do nothing about the president.
Currently the GENIUS Act bans members of congress and their families from profiting from stablecoin, but that regulation does not apply to the president and his family, and key democrats are understandably unhappy about this omission.
"Passing the GENIUS Act without strong anti-corruption measures stamps a Congressional seal of approval on President Trump selling access to the government for personal profits," argued Democratic Senator Jeff Merkley, yet with the bill now passed with overwhelming support there's little that can seemingly be done to amend proceedings.
However, the overall regulation could still affect Trump's profits in a number of ways. Demand for World Liberty Financials USD1 could reduce and the potential for greater sales would drop, and the newly-imposed rules placed on stablecoins could significantly increase the running costs of WLFI as financial disclosures and administrative processes will likely increase exponentially, even if the president and his family are continually allowed to trade.