Senate Democrats seek hearings on Trump crypto income

Five Senate Democrats are asking for hearings into President Donald Trump’s crypto interests after his latest financial disclosure showed more than $1.2 billion in crypto-related income last year. For retail investors, the fight matters because Congress is also debating rules that could shape how crypto tokens, exchanges and issuers operate in the U.S.

Sen. Elizabeth Warren of Massachusetts, Sen. Richard Blumenthal of Connecticut, Sen. Gary Peters of Michigan, Sen. Dick Durbin of Illinois and Sen. Ron Wyden of Oregon said Friday that the disclosure raises questions about conflicts of interest, possible foreign influence and Trump’s role in setting crypto policy while he benefits from the sector.

The five lawmakers are the top Democrats on the Senate Banking, Investigations, Homeland Security, Judiciary and Finance committees. They asked those committees to hold hearings on Trump’s crypto dealings.

What the disclosure showed

Trump’s financial disclosure report, released last month, said he made more than $1.2 billion from crypto-linked businesses. That included more than $635 million connected to his Trump meme coin and more than $588 million from token sales tied to World Liberty Financial, according to the disclosure.

A meme coin is a crypto token whose value is often driven by branding, online attention and community demand rather than a traditional business model. Token sales are offerings in which buyers purchase digital assets issued by a project or company.

The disclosure also showed that Trump holds Bitcoin and Ethereum worth tens of millions of dollars. Bitcoin and Ethereum are the two largest crypto networks by market value, and their tokens are widely used as benchmarks for the broader digital-asset market.

The senators focused in part on World Liberty Financial, the Trump family’s crypto company. They said the disclosure showed unidentified third parties have an ownership stake in the firm. UAE royals purchased a 49% stake in World Liberty Financial last year, according to Decrypt.

Why Democrats want hearings now

In their Friday statement, the lawmakers said Trump’s disclosures increased their concern that the president is urging Congress to support crypto legislation while earning money from the industry. They also pointed to administration actions they described as easing rules on crypto companies and reducing enforcement, including the disbanding of the Justice Department’s National Cryptocurrency Enforcement Team.

The National Cryptocurrency Enforcement Team was a Justice Department unit focused on crypto-related crime and enforcement. The senators said its removal fits a broader pattern of weakening oversight while Trump has crypto financial interests.

The White House response was not included in the lawmakers’ announcement.

The Clarity Act is part of the fight

The hearing request comes as the Trump administration presses Congress to pass the Clarity Act. The bill would create a formal legal framework for much of U.S. crypto activity, according to supporters of the legislation.

The measure has run into delays over several issues, especially ethics language aimed at Trump’s ability to issue or promote digital assets while serving as president. The bill advanced out of the Senate Banking Committee in May after two Democrats broke with their party to support moving it ahead. Those lawmakers said a deal on ethics provisions was still needed before they would support the bill on the Senate floor.

Backers of the Clarity Act say Congress needs to pass it by August for it to become law this year, given the approaching November midterm elections.

This story draws on original reporting from Decrypt.