The post Warren slams GENIUS Act over Trump-linked USD1 stablecoin deal appeared on BitcoinEthereumNews.com.

Senator Elizabeth Warren has criticized the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act due to the corruption claims surrounding Trump’s USD1 stablecoin. Warren is pleading with the US Senate to reject the bill, which both parties in Congress previously supported. In a post on X, Warren called out what she described as a “shady crypto deal” between the Trump-affiliated firm and the United Arab Emirates, a foreign government that, she claims, is set to funnel significant funds to the Trump family. According to Warren, the controversial arrangement helped catapult USD1 to become the seventh-largest stablecoin in the world. The GENIUS Act, a bipartisan effort aimed at establishing a federal regulatory framework for stablecoins, has faced mounting scrutiny following revelations that World Liberty Financial (WLFI), a crypto firm co-founded by Eric Trump and Zachary Witkoff, secured a substantial investment from Abu Dhabi-backed MGX to use USD1 for transactions on Binance, the world’s largest crypto exchange. Senator Warren has called the GENIUS Act a “grift,” claiming it could allow Trump family members to financially benefit from it and expose Americans to financial risks, consumers to exploitation, and the country to security risks. She argues the bill, as currently drafted, doesn’t contain enough protections against money laundering and doesn’t guard against potential misuse of stablecoins by foreign rivals. She stressed that the Senate should not affirm a crypto bill enabling this sort of power abuse this week. Warren makes an unexpected U-turn on the GENIUS Act before the House floor vote Several unforeseen issues have arisen due to President Donald Trump’s plan to implement strong stablecoin legislation in the US. A recent example is the refusal of US Senator Elizabeth Warren to endorse the GENIUS Act. Senator Warren pointed out flaws in the bill because she worried that if it…

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Filed under: News - @ May 5, 2025 10:23 am