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Trump’s Crypto Corruption Puts Centrist Democrats in Bind

Moderate Democrats want to put a stop to Trump’s meme coin self-dealing. But that might cut off campaign donations from crypto interests.

The latest version of a sweeping crypto bill exposed a deep divide between progressives and moderate Senate Democrats: whether to accommodate the industry ahead of the fall midterms, or declare open war on it.

Seven Democrats issued a statement Wednesday night lamenting that they cannot vote for the latest draft of the bill, citing weak provisions aimed at tamping down Donald Trump’s crypto self-enrichment, among other issues. In a joint statement, they pledged to keep working with Republicans to “get this over the finish line.”

Other Democrats say they have had enough of crypto, however. The problems with the bill run much deeper than Trump’s corruption, Sen. Chris Murphy, D-Conn., said at a Wednesday speech, and it is time for Democrats to openly break with the industry and its $189 million in campaign funds.

“This bill is in front of the Senate because the industry paid for it,” Murphy said. “We should, in this election, make crypto’s purchase of our political process, AI’s purchase of our political process, a major campaign issue.”

“This bill is in front of the Senate because the industry paid for it.”

“This bill is in front of the Senate because the industry paid for it.”

The two sides staked out their position as Republicans released a draft text of the far-reaching bill known as the Clarity Act, which would create an industry-friendly regulatory structure for cryptocurrencies.

Critics say there are many problems with the bill, including lax consumer protections and loopholes that would enable money laundering. Nothing in the monthslong fight over the legislation has generated as much controversy as Trump’s self-dealing, however.

Between the $TRUMP meme coin and other ventures, Trump profited at least $1.4 billion off crypto last year. Democrats have proposed requiring Trump to divest himself of his crypto ventures and put enforcement in the hands of Democratic state attorneys general.

Instead, Republicans issued a proposal, with Trump’s blessing, that would prevent him from issuing new meme coins and put enforcement in the hands of his own Department of Justice and would not be enforceable after he leaves office.

Sen. Kirsten Gillibrand Wants to........

© The Intercept