Donald Trump’s former election campaign manager Paul Manafort said the US President could use the Justice Department to push back against resistance from the banking industry over his administration’s cryptocurrency agenda, as Washington seeks to assert control over the volatile sector.
The country's 50 states each have their own economic systems and can challenge any federal legislation if they deem it to be unconstitutional.
Mr Trump, once a crypto sceptic, has pushed for cryptocurrencies to be included in banking portfolios and make them more accessible to consumers. He has signed off on legislation such as the Genius Act, the Clarity Act and the Anti-CBDC Surveillance State Act to further boost the market.
Mr Trump this year signed an executive order directing "fair and open access to banking services" for the cryptocurrency sector. In April, the Department of Justice scrapped a unit that investigated crypto fraud, effectively loosening oversight of the industry.
Mr Trump has also pushed for the creation of crypto reserves at the state level, but a number of states have opposed the move. Last week, however, Texas became the first US state to create a cryptocurrency reserve with a $5 million purchase of Bitcoin.
Mr Manafort said crypto legislation faced opposition from the banking industry, as it seeks to protect its interests, and political figures. The Texas move, however, was supported by politicians from both sides of the aisle.
"Banks are ... using the political process to try and win at the state level what they can't win at the national level, but the national level will pre-empt the states on this," he said at the Bitcoin Mena 2025 conference in Abu Dhabi on Monday.
In terms of the regulatory process, "if the states challenge that, Washington will go to the courts to make sure that they can't thwart it ... banks may say yes on this side, but they're working to still preserve their monopoly on the other side", he said.
Mohamed Al Kuwaiti, head of the UAE's Cybersecurity Council, addresses the Bitcoin Mena 2025 conference in
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