Morning Minute: Trump's Crypto Entanglements Threaten CLARITY Act Timeline
Senator Chris Murphy accused President Trump of corruption, alleging the UAE covertly funneled $187 million to Trump family entities through World Liberty Financial just before Trump’s 2017 inauguration, then received expanded access to restricted U.S. AI chips in return. The claims include a $500 million deal in which a UAE-backed fund acquired 49% of World Liberty Financial days before Trump took office, with millions going to Trump allies and administration figures. Trump denies knowledge of the investment, while World Liberty Financial insists the deal had no impact on chip policy, dismissing the allegations as politically motivated. These revelations come as the White House hosted top crypto organizations and banks to discuss stablecoin regulations, but no agreement was reached. The controversy has further politicized the crypto regulatory bill, as Democrats now link passage to anti-corruption measures targeting Trump’s business ties. Banks remain firm on their demands regarding stablecoin provisions. Overall, legislative and regulatory uncertainty for the crypto industry persists amid escalating partisan conflict.
