Can Foreign Crypto Buy the Trump White House? Democrats Say Yes

The fear is hardly novel. From British banks financing railroads in the 19th century to Saudi sovereign wealth in Silicon Valley today, foreign capital has long shaped American political outcomes. Investment, after all, is the lifeblood of capitalism—welcomed with open arms and, more often than not, tax incentives. But crypto, unregulated and rapidly scaling, represents a new frontier — and Democrats argue it could become a direct conduit for foreign digital cash to flow straight into the citadel of American democracy: 1600 Pennsylvania Avenue.

At a press conference on Capitol Hill Wednesday, Rep. Waters blasted the Republican-led push to pass three major crypto bills as part of what the GOP has branded “Crypto Week.” The Republican crypto legislation, she said, “is a big enough giveaway to President Trump.”

But beyond the usual partisan jabs, Waters raised a broader concern: that beneath the hype of blockchain lies a deeper risk—the potential for foreign powers to exploit crypto as a tool of geopolitical influence.

The bills in question — the CLARITY Act, the GENIUS Act, and a third aimed at banning a central bank digital currency (CBDC) — have been renamed by Democrats as the “Calamity” and “Unstable” Acts. A banner bearing those names loomed behind them as they unveiled their counter-campaign: “Anti-Crypto Corruption Week.”

From Skepticism to Embrace

Once a vocal skeptic of cryptocurrency, Donald Trump has reversed course in his second term. His growing enthusiasm for digital assets, Democrats point out, has emerged alongside his family’s expanding ties to the crypto industry.

“Trump,” Waters charged, “is actively building the most corrupt, self-dealing crypto empire this country has ever seen.”

The pivot, Democrats allege, is not rooted in economic innovation but personal gain — a transformation some say began when First Lady Melania Trump minted and sold her first NFT.

At the time, President Biden—despite receiving a $5 million campaign donation from disgraced crypto mogul Sam Bankman-Fried—maintained a notably cautious posture towards crypto. While the White House was understood at the time to be quietly developing digital asset policy behind the scenes, officials remained publicly tight-lipped. Crypto was the elephant in the room that no one wanted to name.

Trump, by contrast, has fully embraced cryptocurrency, surrounding himself with some of the most prominent “crypto bros” in the industry.

On Capitol Hill, House Majority Leader Steve Scalise announced Wednesday morning that Republicans, as Trump promised, had the votes to advance the crypto rule. But events on the House floor told a different story—things did not unfold as quickly or smoothly as Trump had hoped. The cracks in Republican unity were unmistakable—and on full display for all to see.

Rep. French Hill (R-AR), chair of the House Financial Services Committee, expressed confidence the House would approve all three measures. The GENIUS Act, already passed by the Senate, would establish backing and audit standards for stablecoins. The CLARITY Act is focused on regulating market infrastructure.

But the Democrats were not buying it.

Rep Waters: Stop Trump in the Crypto Act

In response, Waters and Lynch have proposed the “Stop Trump in the Crypto Act” of 2025, which would ban presidents, vice presidents, members of Congress, and their immediate families from participating in crypto businesses.

They claim the Republican legislation could allow foreign entities to buy influence over the president — legally. The concern is no longer just ethics but national security.

“What we’re talking about is this. It was mentioned that I and others had worked, for example, on stablecoins for a long time. You’ll hear the reference to trying to do everything that we can to have guardrails. And so these bills go in the opposite direction to keep us from having the kind of guardrails that are needed in order to make sure the investors are protected. And so we’ve worked very hard,” Rep Waters told The Pavlovic Today.

“As a matter of fact, one of the big struggles was between the SEC and the CFTC, and who was going to have the regulation, regulatory responsibilities. We have worked very hard with the SEC and who filed lawsuits against many of the big crypto firms that were already being fraudulent as it relates to SEC laws, and they did not want that at all,” she added.

“And so we are not adamantly opposed to looking at some instances where we may work with the CFTC because of commodities, but securities, as we have worked with the SEC, is absolutely similar to what should be doing with crypto, and that’s in both of the bills in some way.”

Lynch was even more direct: “They will have debilitating effects on our financial stability, national security, and consumer protection.”

According to Lynch, Trump holds a $620 million stake in crypto, including a $2 billion investment in stablecoins from Abu Dhabi.

“So this is the perfect bribe,” he said. “Trump can earn millions of dollars every week because he has $2 billion in capital and pays zero interest on it. And if he ever does anything Abu Dhabi doesn’t like, they can snatch their money back. It puts Trump on the Abu Dhabi payroll.”

Lynch also alleged that Trump family members have pursued a stake in Binance US. He pointed to deeper entanglements, noting: “An Abu Dhabi-based investment firm will be using Trump’s stablecoin to make that $2 billion investment in Binance, making the stablecoin one of the top 10 in the world,” he said.

Rep. Lynch: This Is Pure Hucksterism

Republicans, for their part, argue the bills bring much-needed clarity and structure to crypto markets. But Lynch countered: “They are specifically designed to provide free reign into our financial system with no accountability or meaningful protections for consumers, national security, or financial stability.”

“These bills include zero provisions to prevent the president, his family, or any public official from engaging in crypto businesses that are clear conflicts of interest,” he said. “This is a man who has claimed bankruptcy six times. He’ll sell you a hat, he’ll sell you a Bible, he’ll sell you a T-shirt, he’ll sell you commemorative coins, jewelry. This is pure hucksterism that will not end well.”

Democrats further warned that the legislation opens the door to another 2008-style crisis. Lynch said Republicans rejected all Democratic amendments, including one that would have prohibited taxpayer-funded bailouts for crypto firms.

“We said, if you’re going to take this risk, then you need to protect the American people,” Lynch said. “Put in a provision that prevents crypto from being bailed out by the taxpayer. Every single Republican voted against it.”

Drawing a historical parallel, he added: “Loose and reckless regulation allowed complex instruments like CDOs to permeate our system before the 2008 crash. Americans paid the price then — $700 billion in bailouts.”

Rep. Sherman: Crypto and Foreign Influence

Pressed by The Pavlovic Today to expand on the connection between crypto and foreign influence, Rep. Brad Sherman laid out his concerns bluntly.

“Trump’s first term, we were all worried that a foreign interest would book a ballroom in one of the hotels and give him $100,000 for it. That is such chump change,” he said. “Now it’s $300 million from Chinese interests associated with TikTok going right into Trump coin.”

He continued: “He makes the Trump coin the way you print up Monopoly money. Only does it electronically, and he gets $300 million from it. Then he announces he’s not enforcing the TikTok law. Abu Dhabi wants influence? They put $2 billion into the Trump stablecoin. That’s an interest-free loan. That’s like a gift of $2 million a week.”

Sherman said the risks go beyond legality. “Crypto is literally hidden money,” he said. “So all you have to do is go to Trump and say, ‘Hey, we bought another billion dollars of Trump coin.’ Ninety percent of that goes straight into your pocket. Now let’s talk foreign policy.”

The Political Genie Is Out of the Bottle

Democrats once courted Sam Bankman-Fried. Now, they fear an unregulated crypto economy could allow billionaire donors — foreign and domestic — to reshape American democracy.

Some argue that on-chain transactions are more transparent than super PAC donations. But Waters and Lynch say it’s not about technology — it’s about power, oversight, and who benefits.

As the digital asset economy embeds itself into the bloodstream of American finance, the absence of regulation, far from being a mere domestic oversight, emerges as a geopolitical vulnerability of the first order. With Republican dissent now bubbling to the surface, the Democrats’ critique of “Crypto Week” begins, inconveniently for some, to gather traction.

What is plainly lacking in Congress is not only consensus but comprehension—an understanding of a technology as novel as it is nebulous. Many lawmakers, sidelined from the drafting process, regard the entire exercise as something imposed rather than authored. The elusive balance between innovation and oversight is treated like a riddle waiting for a silver bullet—though none appears imminent.

To believe that foreign governments would not take their chance here is not strategy. It’s wishful thinking. And what will Trump say, when he does speak? Because he will. He always does.

read also

Trump Blames Democrats for Looming Government Shutdown

Congress is getting closer to a government shutdown at midnight. President Trump said on Tuesday that federal job cuts would be inevitable if Democrats forced a government shutdown, accusing his opponents of putting immigration and spending ahead of the national interest. President Donald Trump met yesterday with Senate Majority Leader John Thune, R-S.D., Senate Minority…

Keep reading

Trump’s Day In Office: September 29, 2025

10:15 AM President Trump signs an Executive Order 11:00 AM President Trump greets the Prime Minister of the State of Israel 11:35 AM President Trump participates in a Bilateral Meeting with the Prime Minister of the State of Israel 12:00 PM President Trump participates in a Bilateral Lunch with the Prime Minister of the State of Israel 1:15 PM President…

Keep reading

Air Serbia’s Tradition Elevated: A New Era of Branding

Air Serbia has unveiled a striking new visual identity under the slogan “Tradition Elevated”, blending heritage with a modern aesthetic and reaffirming its role as a national carrier and ambassador of Serbian culture and hospitality. In an era where many airlines adopt generic corporate branding, Air Serbia is choosing to highlight what makes it unique—its deeply…

Keep reading