WASHINGTON - Following the House’s failure to include ethics provisions in legislation that would establish a regulatory structure for digital assets, and as the Senate begins to consider the matter, Democracy Defenders Action (DDA) released a letter to Senators urging them to include key ethics provisions to ensure the safety and stability of the nation’s financial markets. They also urged them to address the significant risks that President Trump’s vast cryptocurrency conflicts of interest pose to the strength of our nation’s democracy and national security.

The letter was signed by Amb. Norm Eisen (ret.), co-founder of Democracy Defenders Action, and Virginia Canter, who serves as chief anticorruption counsel for the organization. Both served as ethics counsel to former Presidents.

“It would be a travesty for Congress to pass further legislation on digital assets without provisions ensuring essential ethical safeguards,” said Virginia Canter, chief counsel for ethics and anticorruption at Democracy Defenders Action. “President Trump cannot be allowed to regulate a financial product that has already helped him rake in more than $55 million - partly by peddling his stablecoin to foreign governments and special interests hoping to obtain influence. The strength of our democracy faces a growing threat with every day that passes without this being addressed through meaningful legislation.”

In late April, Democracy Defenders Fund released a report, Trump’s Crypto Conflicts of Interest, which exposes how Donald Trump’s entanglements with the cryptocurrency industry could pose serious risks to democratic institutions and public trust. At that time, his crypto assets, which include his $TRUMP memecoin, as well as his USD1 stablecoin and $WLFI governance token issued through his company World Liberty Financial (WLFI), were estimated to be worth $2.9 billion, or approximately 37% of his total wealth. Members of the President’s family, like his wife Melania, also scored significant earnings from their own memecoins.

Since our report was released, the President’s and his family’s entanglement in digital asset markets has only grown. The President’s recent ethics disclosure revealed that he has earned $57.3 million from his stake in WLFI as of last December and has invested over a million dollars in Ethereum. The Trump Media & Technology Group recently announced that it would launch a series of exchange-traded funds with Crypto.com and invest over $3 billion to buy cryptocurrencies. And the President’s two eldest sons have attained a 20% stake in the bitcoin mining operation American Bitcoin. White collar criminals and special interests are now all but saying the quiet part out loud: Binance’s founder Changpeng “CZ” Zhao revealed he asked the President for a pardon following the announcement that Trump’s stablecoin would facilitate a $2 billion investment by Abu Dhabi-backed firm MGX into Binance.

“It is clear that the President's conflicts of interest are actively undermining the health of the United States crypto market by creating a dynamic where the companies that do best are the ones that pander to or partner with Trump,” said Amb. Eisen. “His conflicts of interest relating to this industry pose an intense threat to our nation’s security and the quality of our democracy. It is imperative that Congress do their job and address this with meaningful legislation.”

The full letter is here.

Democracy Defenders Action brings together a nonpartisan team to work with national, state, and local allies across the country committed to upholding the rule of law, fighting against autocracy and defending the Constitution.