Trump Crypto Drama Heats Up: Lawmakers Call For Clearer Crypto Rules

Crypto is in the spotlight, as members of the US House Financial Services Committee met this week to tackle regulation reform. At centerstage is none other than the US President himself, Donald Trump, and his various engagements and ventures in cryptocurrency and Defi. Lawmakers from both sides of the aisle are now calling for clearer rules.

According to FOX’s Eleanor Terrett, the committee’s session revealed strong bipartisan support for updated disclosure requirements around digital assets.

Republicans And Democrats Find Common Ground On Crypto Rules

Both political parties agreed that establishing a framework for digital assets would help not just the crypto industry but also other sectors that cryptocurrency technology affects.

Witnesses at the hearing pointed out that the Securities and Exchange Commission’s current application of the Howey Test to digital assets doesn’t work well for secondary market transactions.

My takeaways from the @FinancialCmte hearing on #crypto market structure reform:

More than ever before, there seems to be a greater bipartisan consensus that there’s a pressing need for regulatory clarity and updated disclosure regimes around digital assets.

Witnesses and… https://t.co/QcER6kOS6Q

— Eleanor Terrett (@EleanorTerrett) April 9, 2025

“We need to stop relying on the courts to define our financial future,” said one senior lawmaker at the meeting. This push for legislative clarity comes after years of companies and investors operating in regulatory uncertainty.

Trump Family Crypto Ventures Raise Concern Among Lawmakers

The committee’s work faces a complication: US President Trump and his family’s direct involvement in cryptocurrency projects.

According to reports, Trump and First Lady Melania Trump are connected to the launch of meme coins and a DeFi project called World Liberty Financial, which recently released a dollar-backed stablecoin named USD1.

These ventures have reportedly generated at least $800 million in fees for entities linked to the president. Some Republicans admitted during the hearing that the Trump family’s involvement with meme coins and stablecoins “makes the work more complicated.”

The situation creates an unusual dynamic where the president’s business interests could affect the very regulations his administration might help shape.

Paul Atkins recently won Senate confirmation as the next Chair of the Securities and Exchange Commission with a 52-44 vote. Many pro-crypto lawmakers see this leadership change as a turning point after what they describe as years of regulatory gridlock.

Others are wary, though, pointing out that long-term regulatory clarity rests more on whether Congress enacts legislation than with who is running the SEC. The committee seems intent on developing legislation that would more clearly articulate when digital assets would be regarded as commodities.

Meanwhile, Trump has been touting his cryptocurrency as a large batch of tokens approaches release. Next Monday, on April 17, about 40 million Trump digital coins—recently worth more than $300 million—will become available for sale for the first time since the token’s debut in January. Holders include a company connected to the Donald J. Trump Revocable Trust, his 2024 financial disclosure shows.

Other Trump coins (TRUMPUSD) will be introduced progressively under a three-year unlock schedule that entitles 800 million tokens in total.

According to Anna Kelly, deputy White House press secretary, Trump’s assets are in a trust managed by his children. and that there are “no conflicts of interest.”

Featured image from Jonathan Raa/NurPhoto via AP, chart from TradingView