Amid a growing interest in cryptocurrency regulation, the US House Financial Services Committee convened this week to discuss necessary reforms. Central to the discourse is President Donald Trump, whose various engagements in the cryptocurrency and DeFi space have sparked significant attention. As a result, lawmakers from both parties have begun to advocate for clearer regulatory frameworks.
According to FOX’s Eleanor Terrett, the committee’s session highlighted a striking bipartisan consensus surrounding the need for updated disclosure requirements regarding digital assets.
Finding Common Ground on Crypto Rules
Both the Republican and Democratic members of the committee expressed agreement that establishing a regulatory framework for digital assets will not only benefit the cryptocurrency industry but also extend its positive impacts to other sectors affected by this technology.
Witnesses at the hearing raised concerns that the current application of the Howey Test by the Securities and Exchange Commission (SEC) is inadequate for secondary market transactions involving digital assets.
My takeaways from the @FinancialCmte hearing on #crypto market structure reform:
More than ever before, there seems to be a greater bipartisan consensus that there’s a pressing need for regulatory clarity and updated disclosure regimes around digital assets.
— Eleanor Terrett (@EleanorTerrett) April 9, 2025
“We need to stop relying on the courts to define our financial future,” asserted a senior lawmaker at the meeting. This new push for legislative clarity arises from years of uncertainty faced by companies and investors in the digital assets space.
Concerns Surrounding Trump Family Crypto Ventures
The committee’s work is further complicated by President Trump and his family’s direct involvement in various cryptocurrency initiatives. Reports indicate that Trump and First Lady Melania Trump are associated with the launch of meme coins and a DeFi project called World Liberty Financial, which has recently introduced a dollar-backed stablecoin named USD1.
These ventures have reportedly amassed at least $800 million in fees for entities linked to the president. Some Republican lawmakers acknowledged that the Trump family’s involvement with meme coins and stablecoins complicates the legislative process.
This situation presents a unique dynamic wherein the president’s business interests could influence the very regulations his administration is responsible for shaping.
A Shift in Regulatory Approach?
Recently, Paul Atkins secured his Senate confirmation as the next Chair of the SEC with a 52-44 vote. Many pro-crypto lawmakers view this change in leadership as a pivotal moment after prolonged regulatory gridlock.
However, there are concerns that effective regulatory clarity will ultimately depend more on congressional action than on the individuals leading the SEC. The committee appears committed to crafting legislation that would explicitly define when digital assets may be treated as commodities.
As developments progress, Trump is also publicly promoting his cryptocurrency projects. He has announced that approximately 40 million Trump digital coins, valued at over $300 million, will be available for sale for the first time since their launch in January. His financial disclosures indicate that holders of these coins include entities related to the Donald J. Trump Revocable Trust.
The Question of Conflicts of Interest
Additional Trump coins (TRUMPUSD) will be rolled out progressively, with a three-year unlock schedule allowing the release of a total of 800 million tokens.
Despite potential concerns, Anna Kelly, Deputy White House Press Secretary, stated that Trump’s assets are managed by his children in a trust, which they claim eliminates any conflicts of interest.
Featured image from Jonathan Raa/NurPhoto via AP, chart from TradingView
