Former President Donald Trump held a pivotal meeting in the Oval Office late Tuesday evening with approximately a dozen conservative Republicans, aiming to consolidate support for a trio of crypto regulation bills currently facing significant opposition within his party. That meeting happened just as Trump was trying to convince remaining hold-outs to get on board with the administration’s agenda of regulating cryptocurrencies into extinction.
During the discussions, Trump expressed frustration over Republicans’ demands regarding the release of Jeffrey Epstein’s files, lashing out at party members who he felt were not fully supportive of his initiatives. His remarks highlighted the escalating chasm in GOP ranks as more conservatives began to speak out in opposition to the bad bill.
The fate of these crypto regulation bills remains unclear. This even includes the recently passed GENIUS Act in the Senate which is now on the razor’s edge of balance. This latest whiplash follows two straight days of resistance from far-right House Republicans. It poses an important question about Trump’s continued power over the party he used to lead. Even with that kind of opposition, Trump doubled down in a defiant Truth Social post late Monday night. He added that there was “‘unanimous agreement to vote’” in favor of the new proposed rules.
In as if that weren’t enough to make things complicated, we’ve heard that Republican leadership has other plans. Or they could slip a ban on central bank digital currency into an unrelated “must-pass” bill. That would allow them to get around today’s legislative deadlock. Party leaders on both sides of the aisle have an urgent desire to do something on crypto regulation. Their capacity to keep their troops together has faced increasing criticism and skepticism.
Additionally, what Trump has said about the Federal Reserve himself has created even more interest and intrigue. A White House official indicated that Trump is “likely” to fire Fed Chair Jerome Powell soon, following Trump’s public criticism of a $2.5 billion renovation project undertaken by the Federal Reserve. Frankly, a change in leadership at the Fed would be quite consequential in changing America’s economic policy. It could change the regulatory landscape for all cryptocurrencies.
In 2018, White House advisor Kevin Hassett went on to defend Trump’s tariffs. He claimed that these tariffs are inflationary, as American consumers will pay higher prices on imports out of patriotism. Rather, Trump is simply doubling down on promoting policies he thinks will ultimately make America stronger and put American interests first. His approach is generating a lot of friction within the party.
As Trump settles into these new challenges, his ability to control Republican lawmakers will still be up in the air. This continued pushback against crypto regulation bills further highlights a divide that may continue to shift the party’s legislative agenda in the years ahead.