XRP regulation continues to face hurdles amid ongoing political controversy. Bipartisan efforts to advance digital asset legislation are getting bogged down due to alleged conflicts of interest involving President Donald Trump and his family, according to Rep. Angie Craig (D-Minn.).

Political Divisions Disrupt Crypto Policy Progress

Speaking at the SALT Conference in Jackson Hole, Wyoming, Craig expressed concerns that family ties to the crypto market are impeding progress. Without explicitly naming Trump initially, Craig emphasized that participation in the digital asset space by any sitting president is troubling unless those financial interests are held in a sealed trust.

“It’s obvious my colleagues are uncomfortable with a president’s active involvement in crypto while in office, unless there are clear trust protections,” Craig stated during the panel.

President Trump and his son, Eric Trump, have both expanded their ventures within the crypto industry since Trump’s return to office in January. Trump has supported several meme-based cryptocurrencies associated with his personal brand and has used his social media network, Truth Social, to back filings for crypto exchange-traded funds (ETFs). Meanwhile, Eric Trump co-founded American Bitcoin, which is invested in by mining giant Hut 8.

Trump’s Crypto Ventures Raise Conflicts of Interest Concerns

Craig and Rep. Bryan Steil (R-Wis.) appeared together to discuss the Digital Asset Market Clarity Act, a bill recently passed in the House with sweeping bipartisan backing. Although the House has taken a firm step forward, obstacles remain in the Senate. The Senate Banking Committee is now drafting their own version of regulatory legislation for digital assets.

Despite Republican momentum behind the bill, many Democrats are withholding their full support. Craig attributes this hesitation largely to the Trump family’s visible presence in the crypto ecosystem.

“The real issue here is the President’s family being so deeply involved in the space. That creates a serious barrier for many Democrats,” she explained.

While the Clarity Act does mention conflict-of-interest provisions, Craig believes the current framework isn’t robust enough to convince dissenting lawmakers.

“If we could establish stronger legislative language preventing such conflicts outright, I’m confident we’d get more Democrats onboard,” she added.

Legislative Integrity and Oversight Under Scrutiny

As the leading Democrat on the House Agriculture Committee—which shares jurisdiction over commodities and digital assets—Craig’s influence is notable. She has continually raised the issue of potential ethical conflicts stemming from presidential involvement in regulated financial markets.

During a committee session in June, Craig reiterated her discomfort with the Trump family’s industry activities, arguing that they complicate fair legislative debate. She pushed for limits on a sitting president’s trading abilities in digital commodities, which are overseen by the Commodity Futures Trading Commission (CFTC), a key crypto regulator.

However, Craig still voted to support the Clarity Act, despite the bill lacking provisions that would mitigate presidential conflicts in crypto.

As lawmakers work toward a regulatory framework for assets like XRP, the need for political neutrality and assurance of fair play becomes more urgent. Without clear safeguards, legislative momentum may continue to slow down amid fears of favoritism or exploitation at the top levels of government.

Related: XRP Price: $12M Max Pain for Bears

Crypto stakeholders and lawmakers will reconvene next month to continue these important discussions at the next policy forum in Washington. Interested participants can register here.