Democrats have come together to denounce what they see as flagrant corruption from the White House as President Donald Trump expands his cryptocurrency company, including spending a private meal at his golf club with high-level investors.
The Democratic Party’s own ties to the nascent cryptocurrency sector, however, are much less clear-cut.
The Republican-led Senate’s efforts to legalize cryptocurrencies by enacting regulations have garnered support from certain Democrats, highlighting the party’s growing support for the sector. But the bill has caused rifts, with many calling for it to stop the Republican president and his family from making money off of crypto directly.
“I completely support the idea of regulating cryptocurrency,” stated Sen. Chris Murphy, a Democrat from Connecticut. But he doesn’t believe one can ignore it when we’re legislating right now, when cryptocurrency is being so obviously utilized by Donald Trump to support his corruption.
When a sector is new, Congress typically takes longer to act on legislation. But crypto companies are now a new political force that is gathering allies and drawing the attention of lawmakers due to the large sums of money and campaign donations they are generating.
An examination of the industry’s influence and the political battle over the so-called GENIUS Act:
“A career in anti-crypto is a good way to end.”
The 2024 election is a perfect example of the crypto industry’s increasing influence. Over $130 million was spent on congressional races by the cryptocurrency super PAC Fairshake and its affiliated PACs.
About $40 million was spent by Fairshake to help Republican Bernie Moreno beat Democratic Sen. Sherrod Brown in Ohio. As chairman of the Senate Banking Committee, Brown was viewed as a leading critic of the sector after losing to Moreno by more than 3 percentage points.
The day after the 2024 election, Coinbase CEO Brian Armstrong commented on social media, “DC received a clear message that being anti-crypto is a good way to end your career, as it doesn’t represent the will of the voters.”
According to Kara Calvert, vice president of U.S. policy at Coinbase, the biggest cryptocurrency exchange in the United States and a major contributor to Fairshake, the company does not see support for its sector as partisan. Additionally, the business made significant expenditures to help Democrats Elissa Slotkin and Ruben Gallego run for Senate seats in battleground states.
During her victorious Senate campaign against Republican Mike Rogers, Fairshake contributed $10 million to Slotkin’s cause. Slotkin, who lost the Michigan race by less than 20,000 votes, advocated for cryptocurrency during her campaign. Slotkin said no to an interview.
Comparable circumstances are emerging in contentious House and Senate contests prior to 2026. Ahead of the 2026 midterm elections, Fairshake said in January that it already had $116 million in funds on hand.
Fairshake spokesman Josh Vlasto told The Associated Press, “We’re not slowing down, and everything remains on the table.”
Hours prior to a Senate vote on cryptocurrency legislation on May 19, a Coinbase-affiliated lobbying group warned U.S. senators via email that the vote would affect their crypto-friendliness ratings.
The expenditure helps to make cryptocurrency more widely known. Members are informed that this is not a passing trend but rather a legitimate industry with actual revenue that is gaining traction in Washington, according to Calvert.
Democrats navigate around a ‘crypto president’
The crypto law was advanced by Republicans with the support of 16 Democrats. Stablecoins, a class of cryptocurrency that is usually based on the US dollar, would be subject to new regulations under the GENIUS Act. It is seen as a move in the direction of improved industry credibility and consumer protections.
For many Democrats, the bill’s main flaw is that it forbids members of Congress and their families from making money off of stablecoins, but it does not apply to the president.
Trump, who was originally skeptical of the sector, has promised to turn the United States into the world’s crypto capital during his second term. He and his family, meanwhile, have vigorously entered almost every sector of the market, including mining businesses, billion-dollar bitcoin acquisitions, a recently created stablecoin, and a meme coin bearing the Trump name.
A person familiar with the situation who insisted on anonymity to discuss private conversations said that Senate Minority Leader Chuck Schumer of New York, days after Trump’s interests in the industry were made public in early May, urged the Democratic caucus to band together and vote against the package in order to have a stronger hand in negotiations.
Once supporting the GENIUS Act, a group of Senate Democrats changed their minds on May 8 and voted to prevent the bill from moving forward. Republicans and Senate Democrats then engaged in negotiations. A senior person who was given anonymity to discuss private discussions claimed that the White House was also active and in communication with the offices of senators on both sides of the aisle.
It is now anticipated that the 100-member Senate will approve the amended bill this month. Changes are still possible. Schumer is a co-sponsor of an amendment introduced by Sen. Jeff Merkley, D-Ore., that would prohibit the president and his family from making money off of stablecoins, but it is unlikely to succeed.
As is typically the case with a lot of legislation, there is potential for improvement. However, we have problems with the president in this specific case,” Arizona Democratic Senator Mark Kelly stated. That being said, both Republicans and Democrats participated in the negotiations. “We arrived at our destination. We took a vote on it. I anticipate that we will approve this version” he stated further.
However, the legislation is causing anxiety. “There’s division in our caucus on that issue,” Schumer remarked when asked if he was pressuring colleagues to vote against the bill. He also mentioned that he had opposed the legislation.
“Everyone can see the huge flaw in this bill,” Murphy stated. I will not be able to issue cryptocurrencies when it is passed, but the president of the United States will be able to do so.
He remarked, “We kind of go from a dirt road to a paved road if this bill passes.”
What comes next
The bill must still pass the House before it can be signed into law by the president, even if the Senate adopts the stablecoin legislation.
The next objective, according to cryptocurrency enthusiasts, is to urge Congress to enact legislation pertaining to market structure, which is far more comprehensive than merely regulating stablecoins.
The first step is Stablecoin. Next, market structure is required. We’re hoping the Senate can come to an agreement fast, Calvert stated.
For some Democrats, the proposal offers an opportunity to place fundamental controls on a quickly expanding sector that is especially appealing to younger voters and men, two demographics who left the party in 2024.
