Crypto Gets Legal Clarity—But Does Trump Stand to Personally Profit?

Trump to Sign Landmark Crypto Bill as Critics Raise Conflict of Interest Concerns

GENIUS Act Passes House—President Trump Set to Sign It Into Law

In a historic moment for the crypto industry, Congress has passed the GENIUS Act, the first major U.S. legislation focused on regulating stablecoins—a type of cryptocurrency tied to the value of the U.S. dollar. President Donald Trump is expected to sign the bill at a White House ceremony Friday afternoon, marking a major turning point in how digital assets are treated in the U.S. financial system.

The bill, formally titled the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS), creates a clear regulatory framework for stablecoin issuers, giving oversight powers to federal and state agencies. The goal is to bring legitimacy to a sector long considered a financial Wild West.

But while the legislation is being celebrated by many in the crypto world, critics are warning of serious conflicts of interest, pointing directly at Trump’s own crypto ties.

What the GENIUS Act Does for Crypto

A Major Win After Years of Uncertainty

The crypto industry has long struggled with regulatory limbo, especially around stablecoins. These dollar-linked tokens, like USDC and Tether, have become essential to crypto trading and cross-border transactions. Yet, there was no national law clearly defining who could issue them or how they should be supervised.

The GENIUS Act changes that by:

• Defining stablecoins as a legitimate form of digital payment

• Assigning regulation to the Federal Reserve and Office of the Comptroller of the Currency (OCC)

• Setting reserve and transparency standards for issuers

• Allowing large stablecoin issuers to choose federal or state-level supervision

This legal clarity is expected to unlock more institutional participation, speed up innovation, and potentially make the U.S. a global leader in blockchain regulation.

Crypto’s Political Turnaround

From Outlaw to Legal Asset

The crypto world was once viewed as a fringe movement, born out of distrust for big banks after the 2008 financial crisis. But now, it’s being embraced at the highest levels of government, with even big tech firms and banks jumping in as Bitcoin hits record highs and stablecoin adoption soars.

“This marks a full-circle moment for crypto. From rebel tech to regulated finance,” said one industry analyst.

Trump’s Crypto Ties Spark Outrage

Critics Warn of Conflict of Interest

Despite the law’s bipartisan backing, critics say the bill could allow Trump to personally benefit from legislation he’s signing into law.

That’s because Trump has deepening ties to crypto, including:

• World Liberty Financial, a blockchain company linked to Trump, has launched its own stablecoin called USD1

• The GENIUS Act puts licensing power in the hands of federal regulators like the OCC

• Critics fear Trump could pressure or remove regulators who don’t grant licenses to politically connected firms

“That is a huge conflict of interest that society is just really not prepared for,” said Todd Phillips, a banking and administrative law professor at Georgia State University.

Can Trump Fire the Regulator

Phillips is especially concerned about Trump’s ability to remove agency heads, including the Comptroller of the Currency. If World Liberty Financial applies for a license and is denied, Trump could potentially retaliate by firing the regulator.

“It’s a really big problem that the president has an indirect financial relationship with a stablecoin issuer,” Phillips told Fortune.

A “Race to the Bottom”

Dual Licensing Could Weaken Oversight

Another major concern is the dual-licensing structure of the law. Issuers with more than $10 billion in stablecoins can choose to be regulated by either:

• Federal agencies, like the OCC

• State regulators, if they meet certain federal criteria and get a waiver

Critics argue this setup could lead to a “race to the bottom”, where states compete to offer the most lenient regulatory environment to attract crypto businesses.

But the Treasury Department disagrees.

In a press call with reporters, a senior Treasury official said that without the bill, the U.S. would be stuck with a confusing patchwork of state laws. The GENIUS Act, they argue, offers a “strong federal baseline” to prevent regulatory arbitrage.

How We Got Here: The Road to the GENIUS Act

Years in the Making

Efforts to regulate stablecoins have been building for years. Back in 2022, Rep. Patrick McHenry (R-N.C.) and Rep. Maxine Waters (D-Calif.) led a bipartisan effort to pass a similar bill. But that push stalled after the collapse of crypto exchange FTX, which cast a shadow over the entire industry.

Once crypto markets stabilized and political donations from major players like Coinbase and Andreessen Horowitz ramped up, Congress took another shot—and this time, the bill passed.

A Political Power Shift

Many observers see the GENIUS Act as a strategic move for Republicans, who have increasingly embraced pro-crypto policies under Trump. The bill’s bipartisan support, however, signals that both parties see blockchain as too big to ignore.

What Happens Next

A Second Crypto Bill in the Works

With the GENIUS Act headed for Trump’s signature, attention now turns to a second bill currently being debated. This one would cover broader crypto regulations, including:

• Cryptocurrency exchanges

• Investor protections

• Asset classifications (commodity vs. security)

If passed, this second bill could further shape the U.S. crypto regulatory landscape and potentially pave the way for more mainstream adoption.

A Milestone with Caution

The GENIUS Act is without doubt a milestone for the digital asset space, offering long-awaited clarity for stablecoins. But it also introduces new ethical and legal questions about presidential influence and financial interest.

Will the law help crypto flourish in the U.S., or will Trump’s personal stake cast a shadow over its implementation? For now, all eyes are on Friday’s signing ceremony—and what comes next.

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