The House is poised to vote on a new cryptocurrency bill that could reshape digital asset rules across America. But beyond the technical jargon lies a story with potential connections to former President Trump’s business ventures. I’ve spent the past week speaking with lawmakers and financial experts to understand what’s really at stake.
The “Financial Innovation and Technology for the 21st Century Act” arrives at an interesting moment. Proposed by Republican Representatives Patrick McHenry and Glenn Thompson, the legislation aims to create clearer guidelines for cryptocurrency trading and blockchain technologies. Having covered Congress for nearly two decades, I can tell you timing in politics is rarely coincidental.
“This bill represents the most comprehensive attempt yet to bring regulatory clarity to digital assets,” said Representative McHenry during a committee hearing I attended last month. His enthusiasm was palpable, but several Democrats expressed reservations about investor protections.
What makes this particular bill noteworthy is its potential intersection with former President Trump’s recent business activities. The Trump family has increasingly embraced cryptocurrency ventures since leaving office. Donald Trump Jr. launched a cryptocurrency platform earlier this year, while the former president himself has promoted various digital token projects to his supporters.
I spoke with Professor Sarah Johnson of Georgetown University, who specializes in financial regulation. “When you examine the fine print of this legislation, you’ll find provisions that could significantly benefit large-scale cryptocurrency promoters,” she explained during our conversation at her campus office. “The timing aligns suspiciously with the Trump family’s expanding crypto portfolio.”
The bill would shift significant regulatory authority from the Securities and Exchange Commission to the Commodity Futures Trading Commission. This matters because the SEC has traditionally taken a tougher stance on cryptocurrency offerings. SEC Chair Gary Gensler has repeatedly warned about fraud risks in cryptocurrency markets.
Data from campaign finance records shows the cryptocurrency industry has dramatically increased political donations in recent election cycles. According to OpenSecrets.org, crypto-related political contributions surged from $28.8 million in 2020 to over $73 million in 2022. Representative McHenry, the bill’s sponsor, received approximately $147,000 from digital asset companies and their executives last year.
I’ve been tracking this story since witnessing heated debates during committee markups earlier this spring. The division isn’t cleanly along party lines. Some progressive Democrats support innovation in financial technology, while certain Republicans worry about national security implications.
Congressman Jamie Raskin told me after a recent hearing, “I’m concerned we’re rushing legislation that creates a regulatory safe haven without adequate consumer safeguards.” His office later provided documentation showing specific provisions that could exempt certain token offerings from disclosure requirements.
My sources at the Treasury Department, speaking on background because they weren’t authorized to comment publicly, indicated internal concerns about money laundering vulnerabilities in the proposed framework. “The bill waters down crucial Know Your Customer requirements that help us track suspicious transactions,” one senior official said during our coffee meeting near the National Mall.
Trump Media & Technology Group, which operates Truth Social and recently completed a public listing, announced plans to integrate cryptocurrency features into its platform. Crypto experts I consulted note the company would likely benefit from the regulatory structure proposed in the McHenry-Thompson bill.
“We’re talking about a potential conflict of interest that deserves scrutiny,” said Representative Alexandria Ocasio-Cortez during a floor speech I covered yesterday. She specifically questioned whether lawmakers had properly considered the implications for former officials with cryptocurrency investments.
The cryptocurrency industry has framed this legislation as necessary for American competitiveness. Brian Armstrong, CEO of Coinbase, stated in a press release, “Without regulatory clarity, innovation in blockchain technology will simply move overseas.” His company’s stock price has jumped 15% since the bill cleared committee.
I’ve reported on financial regulation since the aftermath of the 2008 crisis. What strikes me about this situation is how sophisticated the lobbying operation has become.
