Opposition Voices Rise: Will the New Cryptocurrency Policy Face “Difficulties”?
(Background: Don’t be discouraged! After the Arizona governor vetoed the Bitcoin reserve proposal, two key proposals are up for approval today)
(Background Supplement: U.S. Stablecoin Legislation in Urgent Need》Democrats Hit the Brakes: GENIUS Act has Flaws, Crypto-Friendly Policies Become a Tool for Trump’s Self-Enrichment)
On May 1, 2025, senior Democratic Senator Elizabeth Warren, along with five colleagues from the Senate Banking Committee, sent a joint letter to Treasury Secretary Janet Yellen, sternly pointing out that the Trump administration’s plan to incorporate cryptocurrency assets into the national strategic reserves “could pose a systemic threat to the stability of the U.S. financial system.” This 12-page letter not only outlined the risks of cryptocurrency price volatility and regulatory arbitrage but also publicly questioned the Trump family’s ties to the cryptocurrency industry for the first time—specifically, World Liberty Financial (WLFI), a cryptocurrency company controlled by the Trump family. Recently, it was revealed that its stablecoin USD1 had reached a $2 billion investment agreement with the Abu Dhabi government-backed venture capital firm MGX, and the shareholder list disclosed on WLFI’s official website showed that Trump family members held a striking 42% stake.
This is not the first time the Democrats have targeted Trump’s cryptocurrency policies. As early as April 29, Maxine Waters, the chief Democratic member of the House Financial Services Committee, successfully blocked a joint hearing on the Republican-led “Cryptocurrency Market Structure Act,” citing “conflicts of interest.” In her letter to the committee, she stated bluntly: “When the Trump family profits hundreds of millions through issuing meme coins (TRUMP) and investing in DeFi projects, any attempts to relax regulations will be reduced to money laundering tools.”
Gene Conflict of Bipartisan Cryptocurrency Policies
Democrats: From “Financial Security” to “Political Settlement”
As a “crypto hawk” within the Democratic Party, Elizabeth Warren’s stance can be traced back to 2017. At that time, she led the drafting of the “Cryptocurrency Act,” which sought to bring 90% of cryptocurrency assets under securities regulation, requiring exchanges to register with the SEC and disclose user information. This position was further escalated in the 2025 joint letter, where she proposed that the scale of cryptocurrency reserves be limited to 0.5% of federal assets and mandated that reserve assets must be held in compliant stablecoins such as USDC.
Meanwhile, Stephanie Murphy, the Democratic leader of the House Financial Services Committee, focused on the issue of “national security.” During a congressional hearing on April 30, she presented FBI investigation data: money laundering transactions conducted through cryptocurrency increased by 370% year-on-year in 2024, with 62% involving Russian oligarchs and Middle Eastern terrorist organizations. “When the Trump family engages in cryptocurrency transactions with Middle Eastern sovereign funds, we must be vigilant about whether this constitutes new geopolitical risks,” Murphy emphasized.
As a core infrastructure of the cryptocurrency ecosystem, stablecoins have recently become the focal point of the bipartisan struggle. The Republican-led “GENIUS Act” attempted to establish a federal regulatory framework for stablecoin issuance, but on May 4, Democrats suddenly turned against it, with nine Democratic senators jointly opposing the current version and calling for strengthened anti-money laundering and foreign issuer reviews. This shift directly led to a sharp decline in the probability of the bill passing in the Senate to 37%.
Republicans: From “Innovation Freedom” to “Strategic Layout”
In stark contrast to the Democrats, the Trump administration is systematically advancing the “strategization” of cryptocurrency assets. An executive order signed on January 24 established a digital asset working group led by AI and cryptocurrency commissioner, “crypto czar” David Sacks, demanding a report within 180 days that includes a regulatory framework for stablecoins and national cryptocurrency reserve standards. On March 6, Trump further signed an executive order announcing the incorporation of 200,000 bitcoins (approximately $18 billion) held by the federal government into the national strategic reserves and exploring the inclusion of assets such as XRP and SOL into the reserve system.
This policy shift reflects the Republican Party’s profound layout regarding “digital dollar hegemony.” Analysis from the strategic consulting firm Rhodium Group indicates that Trump’s new cryptocurrency policy aims to transfer the settlement function of the dollar from the traditional banking system to the blockchain through the “stablecoin + on-chain assets” model, thereby circumventing geopolitical friction’s impact on the dollar’s status.
Trump’s cryptocurrency policy direction directly influences market sentiment. On March 2, when the White House announced the exploration of the possibility of cryptocurrency reserves, Bitcoin’s price soared 12% within 24 hours, breaking through the $95,000 mark. However, this optimism did not persist; after the Democratic joint letter was exposed on April 29, Bitcoin’s price plummeted 8% in a single day, with a market value evaporating by over $200 billion. On-chain data shows that WLFI sold a total of 128,000 ETH (approximately $350 million) between March 1 and April 30, coinciding with the peak market selling pressure.
Turbulent “Crypto Empire”
Eric Trump, as the operator of the family’s cryptocurrency business, has deeply intertwined personal wealth with the cryptocurrency industry. In addition to serving as an ambassador for World Liberty Financial, he also acts as an advisor to Japanese crypto giant Metaplanet and American bitcoin mining company American Bitcoin, with a total annual salary exceeding $20 million.
This conflict of interest has sparked strong dissatisfaction among Democrats. Warren stated in the joint letter: “When Eric Trump promotes the Dubai cryptocurrency tower at the Token2049 summit, he is essentially leveraging the political capital of the presidential family for financial harvesting.” The American center-left oversight organization Accountable.US has labeled Trump’s coin-ranking plan as “the most blatant presidential corruption and profiteering scheme in U.S. history,” believing it will open the door for wealthy donors to gain access to the U.S. president, benefiting the Trump family.
According to OpenSecrets data, the cryptocurrency industry donated over $120 million to federal political candidates in 2024, with 78% flowing to the Republican Party. Leading firms such as Coinbase have also donated $35 million to Trump’s campaign team through PACs (Political Action Committees) in exchange for policy support. This kind of “money politics” has heightened the Democrats’ vigilance, with Congressman Brad Sherman presenting evidence at the hearing: among WLFI investors are the Saudi sovereign wealth fund and Russian oligarchs, and these funds could be laundered through cryptocurrency transactions.
Silicon Valley tech giants and Wall Street “old money” are showing a divide in this struggle. BlackRock CEO Larry Fink openly supports Trump’s cryptocurrency reserve plan, stating, “Bitcoin is digital gold against fiscal deficits.” In contrast, renowned economist and gold bull Peter Schiff insists, “Both U.S. stock index futures and the dollar have faced selling. However, gold and Bitcoin are showing exactly opposite trends. Gold is acting like a safe-haven asset, rising about 1%. Meanwhile, Bitcoin’s trading performance resembles that of a risk asset, falling about 2%. Clearly, Bitcoin is not digital gold.”
Currently, there are three key bills before the U.S. Congress: the Republican-led “Cryptocurrency Market Structure Act,” the Democratic “Cryptocurrency Consumer Protection Act,” and the bipartisan compromise “Stablecoin Regulatory Framework.” Analysts point out that if Trump fails to push through at least one bill before November 2025, the cryptocurrency industry will face the risk of a “regulatory vacuum.”
May 6 is the deadline for the White House to establish strategic Bitcoin reserves and a U.S. digital asset reserve order, requiring the Treasury Secretary to submit an assessment report within 60 days. Will the Trump administration be able to deliver this “assignment” on time?
