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Ask crypto Twitter whether Donald Trump is good or bad for the industry and you’ll get two loud answers. Both are partly right, and that’s the problem. Crypto won legislation it spent a decade chasing, and in the process it tied its reputation to one politician and his family’s businesses.
What Crypto Gained
The wins are real. Trump signed the GENIUS Act on July 18, 2025, creating the first federal stablecoin framework, with 100% reserve backing in liquid assets. Supporters argue that the US was falling behind China and other countries in the crypto race, and that bold action was needed. Industry leaders such as Coinbase’s Brian Armstrong, Ripple’s Brad Garlinghouse and Strategy’s Michael Saylor have backed his approach.
For an industry that spent years being treated as a target by regulators, clear rules and a friendlier White House matter. That is the best case for Trump, and it’s a strong one.
What It Cost
The other side of the ledger is conflicts of interest. Trump and his family own 60% of World Liberty Financial, and a family-affiliated company receives 75% of revenue from its coin sales. The company launched the USD1 stablecoin while the GENIUS Act was being debated. When it announced a $2 billion deal between Abu Dhabi’s MGX and Binance using that stablecoin, Democrats abandoned the bill and branded it a vehicle for “crypto corruption.”
The same pattern is visible in the memecoin. One report found that two Trump-affiliated companies held 80% of the $TRUMP coin as of May and had collected more than $324 million in fees. Decrypt noted that these conflicts dominated the debate and delayed the passage of GENIUS. The industry’s own ally became its biggest talking point for critics.
Also Read: Crypto Spent Hundreds of Millions on the Midterms. What Did It Actually Buy?
The Fair Counterargument
The White House says the president’s assets are held in a trust managed by his children, with no conflicts of interest. The OCC has also rejected allegations of improper interference, and supporters argue that the existence of a family business doesn’t mean the regulatory decisions themselves were corrupt. Reasonable people can look at the same facts and land in different places. Still, even sympathetic voices admit the optics are a problem.
The Midterms Raise the Stakes
This matters more now. Democrats just won Congress, and the CLARITY Act, crypto’s other major bill, failed a Senate cloture vote 49–50 in September, with ethics provisions a sticking point. The TRUMP memecoin has lost about a third of its value in a week. If the next bill comes with tougher ethics rules, the question is whether the industry accepts them or keeps defending a position it can’t easily defend.
FAQ
What did the GENIUS Act do?
It created the first federal framework for stablecoins, requiring full reserve backing with liquid assets.
What is World Liberty Financial?
A crypto firm founded in 2024 and run by Trump’s sons, it launched the USD1 stablecoin in March 2025. The family owns a majority stake.
Why did the CLARITY Act stall?
A mix of factors, including disagreements over ethics provisions tied to the president’s crypto ventures.
The Bottom Line
Crypto got the laws it wanted, and the question is what it gave up. Legitimacy won through legislation can last. Legitimacy that depends on one person’s brand is harder to keep once he leaves office. Whether the trade was worth it will depend on what survives the next Congress, and the answer won’t be in this week’s price chart.
I’m the cryptocurrency guy who loves breaking down blockchain complexity into bite-sized nuggets anyone can digest. After spending 5+ years analyzing this space, I’ve got a knack for disentangling crypto conundrums and financial markets.
