U.S. Congressman Gerry Connolly accuses President Donald Trump of having “100 conflicts of interest” related to crypto, calling it “public corruption.” Could Trump’s crypto activities slow the legal progress of the industry? Let's analyze in detail.
Connolly Accuses: Trump and “100 Conflicts of Interest”
Connolly, Democratic Congressman from #Virginia and senior member of the House Oversight Committee, stated to DL News on Monday that the first 100 days of Trump’s presidency are rife with conflicts of interest, especially with the Trump family's crypto projects. He criticized Trump’s favoritism toward the crypto industry, such as the SEC (under new leadership appointed by Trump) dropping lawsuits against Coinbase, Ripple, and Binance – which the Biden administration had tightened. Connolly emphasized: “This is public corruption,” referring to Trump inviting the 220 largest holders of the meme coin $TRUMP to attend the gala on May 22, causing the token price to rise over 50%.
On April 30, Connolly and 20 Democratic Congress members listed 100 conflicts of interest, 20% of which are related to crypto. They criticized the SEC for dropping the lawsuit against Coinbase after the company contributed $1 million to Trump’s inauguration fund, and stopping the fraud investigation with Justin Sun – who invested $75 million in World Liberty Financial (WLF), a DeFi project of the Trump family. Sun denied the allegations but did not provide further comments.
The Trump Family and the Crypto Empire
The Trump family operates #WLF (with stablecoin USD1), develops crypto ETFs, and two meme coins worth $2 billion (according to CoinGecko). USD1, backed by U.S. Treasury bonds, executed a $2 billion deal with MGX (UAE), expected to bring hundreds of millions of dollars in fees to WLF, according to The New York Times. Senator Elizabeth Warren called this “opaque,” demanding an ethics investigation. Senator Chris Murphy (D-Conn.) on April 30 called Trump’s meme coin the “most corrupt behavior in White House history,” claiming it is a way to receive secret money from businesses.
Reaction from Congress and the Crypto Industry
Senator Cynthia Lummis (Republican – Wyoming), a supporter of Bitcoin, acknowledged: “This is my president, but this concerns me.” Commerce Secretary Howard Lutnick, former CEO of Cantor Fitzgerald (working with Tether), is accused of a conflict of interest while participating in Trump’s digital asset task force. The White House rebutted: “Trump's assets are managed by children in a trust, there is no conflict of interest,” according to Anna Kelly, deputy press secretary.
The GENIUS Act – legal framework for stablecoins – faces obstacles as Senator Chuck Schumer and 4 others (including Ruben Gallego) withdraw support, demanding additional anti-money laundering measures and financial protections, without directly mentioning Trump.
Impact on the Crypto Market
This event brings many signals:
Legal Pressure: Controversy slows the GENIUS Act, affecting stablecoins (market cap of $240 billion) and projects like USD1.
Short-term volatility: $TRUMP price rises 50%, but ethical concerns may restrain Bitcoin ($94,000) and altcoins.
Increased scrutiny: Pressure from Warren may tighten regulations, affecting ETFs (which attracted $1.8 billion last week).
Future Prospects
Despite controversy, the influence of #TRUMP could drive crypto if legal barriers are overcome. With fund inflows reaching $3.4 billion last week, the market remains promising in the next 2-3 years, but a clearer legal framework is needed.
Conclusion: Will Trump Shape Crypto or Cause Chaos?
Connolly accuses Trump of “public corruption” with 100 conflicts of interest related to crypto, from the $TRUMP gala to USD1 (a $2 billion deal). Although the White House rebutted, pressure from Democrats slows the GENIUS Act, affecting the stablecoin industry. Investors need to closely monitor to assess risks and opportunities in this chaotic context.
Risk warning: Crypto investment carries high risks due to price volatility and legal instability. Consider carefully before participating. #anhbacong