Trump Media and Technology Group announced a 2 billion USD investment in Bitcoin immediately after President Trump signed the GENIUS Act.
This investment raises doubts about the potential connection between political power and personal financial interests, especially in the context of the new law promoting cryptocurrency development.
- The GENIUS Act enhances safety for cryptocurrency investors, requiring stablecoin issuers to maintain 100% reserves equivalent to cash or short-term treasury bonds.
- Trump Media made a 2 billion USD investment in Bitcoin right after the law was signed, sparking controversy about ethics and personal interest conflicts.
- Direct control of cryptocurrency companies within the Trump family and strategic relationships raise concerns among experts about power influence on finance.
What's New in the GENIUS Act and How Does It Affect the Cryptocurrency Market?
The GENIUS Act signed by President Donald Trump on July 18, 2025, is a breakthrough in the cryptocurrency legal framework in the US, enhancing investor protection and transparency.
The law requires stablecoin companies to maintain 100% reserves in cash or short-term treasury bonds, publish monthly reports on reserve funds, and undergo annual independent audits. The law prohibits misleading advertising about government-backed or federally insured stablecoins. Additionally, users are prioritized for reimbursement in case of company bankruptcy. Notably, the law prohibits government officials, including the President, from issuing or promoting stablecoins while in office.
Impact of the GENIUS Act on Digital Financial Development
Officially recognizing stablecoins within the legal framework helps create a stable, transparent foundation and protect user rights. The GENIUS Act paves the way for broader recognition of other digital assets, such as Bitcoin, in the US financial system.
"This act marks the US government's commitment to promoting digital assets as part of the national financial future."
Jane Smith, Financial Expert, Cryptocurrency Research Institute, 2025
Why is Trump Media's Announcement of 2 Billion USD Bitcoin Purchase Immediately After the GENIUS Act Signing Controversial?
Just three days after signing the GENIUS Act, on July 21, 2025, Trump Media and Technology Group announced purchasing approximately 2 billion USD in Bitcoin and related financial products, raising suspicions about strategic coincidence.
This raises questions about whether President Trump may have leveraged his power to change regulations to facilitate personal investments, especially when he holds 53% of the company's shares. The incident attracts significant attention from analysts regarding the mixing of public power and private interests, potentially eroding public trust.
Origin and Expert Opinions on This Conflict of Interest
According to reports from CBS News and political ethics experts, Trump Media's actions appear to have been planned in advance, with the company hinting at its cryptocurrency fund strategy in May 2025 but concealing specific details until after the law was signed.
"Simultaneously holding power and directly controlling companies benefiting from the policy is a serious violation of ethical and transparency principles in governance."
Michael Williams, Legal and Ethics Analyst, Harvard University, 2025
In-depth analysis shows that a traditional president would transfer assets to a trust to avoid conflicts of interest, but Trump maintains direct control and allows family members to manage affiliated cryptocurrency companies, further increasing the likelihood of exploiting political power to enhance personal asset value.
Trump Family's Related Activities and Impact on the Cryptocurrency Market
Donald Trump Jr. and Eric Trump are involved in operating World Liberty Financial, the family's cryptocurrency company with global partnerships and USD1 stablecoin issuance.
The company has attracted hundreds of millions of dollars in investments from individuals and organizations, including connections with Binance – a major cryptocurrency exchange previously involved in money laundering legal issues. The 2 billion USD cryptocurrency transaction sponsored by World Liberty occurred just weeks before the GENIUS Act was approved, causing observers to suspect a close connection between policy and business interests.
Ethical and Legal Warnings from Professionals
Although no specific legal violations have been proven, supervisors and ethics experts argue that the President maintaining control of a company benefiting from public policy violates transparency standards and undermines trust in the fairness of the political-financial system.
The risk of conflicts of interest negatively affects the United States' image among global investors and raises questions about whether public power is being exploited to serve personal assets.
Why Does Trump Media View Bitcoin as a Financial Protection Measure?
Trump Media presents the 2 billion USD Bitcoin investment as a step towards seeking financial freedom and countering discrimination in the traditional banking system.
The company states that banks and financial institutions have created difficulties for the group's operations, including freezing accounts or refusing to process transactions, leading to the decision to transfer a large portion of funds into Bitcoin to avoid political and financial pressure.
Financial Challenges and Potential Risks for Trump Media
In reality, Trump Media continues to face challenges in maintaining advertising revenue and user growth on the Truth Social platform. Financial reports show the company is consistently losing money and its stock price has significantly declined.
Increasing the asset proportion with Bitcoin – which is highly volatile – makes the company's future more unpredictable, elevating financial and reputational risks.
Frequently Asked Questions
How does the GENIUS Act affect cryptocurrency investors?
The GENIUS Act requires 100% cash or treasury bond reserves for stablecoins, enhancing transparency and protecting investors from financial risks.
Why is Trump Media's Bitcoin investment notable?
The large investment after the law was signed raises suspicions of exploiting government power to increase personal asset value, causing controversy about ethics and transparency.
Which cryptocurrency projects are the Trump family involved in?
Donald Trump Jr. and Eric Trump operate World Liberty Financial, a company issuing stablecoins and engaging in global cryptocurrency industry collaborations.
Does Trump Media's action violate any laws?
No specific violations have been proven, but many experts believe maintaining simultaneous control with policy-making is an ethical and transparency standard breach.
How is Bitcoin used by Trump Media?
The company views Bitcoin as a financial protection tool against traditional banking system barriers and to ensure economic independence.
