Trump Family Crypto Ventures Raise Concern Among Lawmakers as House Financial Services Committee Tackles Regulation Reform

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

Members of the US House Financial Services Committee met this week to discuss President Donald Trump's administration and his family's various engagements in cryptocurrency and Defi, especially amid the ongoing saga of regulatory reform.

As reported by FOX’s Eleanor Terrett, the committee session saw bipartisan support for updated disclosure requirements around digital assets.

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

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

The committee's work is complicated by 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.

The hearing also touched upon Paul Atkins's recent confirmation as the new Chair of the Securities and Exchange Commission with a 52-44 vote in the Senate.

Many pro-crypto lawmakers see this leadership change as a turning point after what they describe as years of regulatory gridlock. However, others remain skeptical, asserting that long-term regulatory clarity hinges more on Congress enacting 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.

The session comes as Trump promotes his cryptocurrency with a large batch of tokens approaching release. On Monday, April 17, about 40 million Trump digital coins—recently valued at over $300 million—will be available for purchase for the first time since the token's debut in January. The holders include a company tied to the Donald J. Trump Revocable Trust, as disclosed in his 2024 financial filing.

The remaining Trump coins (TRUMPUSD) will be released incrementally over a three-year unlock schedule, ultimately totaling 800 million tokens.

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