House Committee Advocates for Clearer Crypto Regulations Amid Trump's Involvement

Cryptocurrency has become a focal point in the United States, as members of the House Financial Services Committee convened this week to address regulatory reforms. Central to the discussion is US President Donald Trump and his various engagements and ventures in the cryptocurrency and decentralized finance (DeFi) sectors. Lawmakers from both major political parties are now advocating for clearer regulatory guidelines.

During the committee’s session, there was strong bipartisan support for updated disclosure requirements around digital assets. Witnesses at the hearing highlighted that the Securities and Exchange Commission’s current application of the Howey Test to digital assets is not well-suited for secondary market transactions. This consensus underscores the urgent need for regulatory clarity and updated disclosure regimes around digital assets.

The committee’s efforts are complicated by the direct involvement of President Trump and his family in cryptocurrency projects. Reports indicate that Trump and First Lady Melania Trump are linked to the launch of meme coins and a DeFi project called World Liberty Financial, which recently introduced a dollar-backed stablecoin named USD1. These ventures have reportedly generated significant fees for entities connected to the president, adding a layer of complexity to the regulatory process.

Some Republicans acknowledged during the hearing that the Trump family’s involvement with meme coins and stablecoins “makes the work more complicated.” This situation creates an unusual dynamic where the president’s business interests could influence the regulations his administration helps shape. The committee is intent on developing legislation that would more clearly define when digital assets are considered commodities, aiming to provide a framework that benefits both the crypto industry and other affected sectors.

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 view this leadership change as a potential turning point after years of regulatory gridlock. However, others caution that long-term regulatory clarity depends more on Congress enacting legislation than on who leads the SEC. The committee’s focus remains on creating clear guidelines for digital assets, which could significantly impact the future of the crypto industry.

Meanwhile, Trump has been promoting his cryptocurrency as a large batch of tokens approaches release. On April 17, approximately 40 million Trump digital coins, recently valued at over $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, as indicated in his 2024 financial disclosure. Other Trump coins (TRUMPUSD) will be introduced progressively under a three-year unlock schedule, totaling 800 million tokens.

According to Anna Kelly, deputy White House press secretary, Trump’s assets are managed by a trust overseen by his children, and there are “no conflicts of interest.” The situation highlights the intricate relationship between political leadership and the rapidly evolving world of cryptocurrency, as lawmakers and regulators work to establish a clear and effective regulatory framework.