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US Senator Elizabeth Warren urged Congress to reject the GENIUS Act. She claimed that the stablecoins bill could open the door to ‘crypto corruption’ linked to foreign influence and political profiteering. Her comments come as bipartisan support for the bill quickly evaporates in the Senate.
The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act originally received bipartisan support. However, at least a dozen senators, including Rep. Ruben Gallego, have since rescinded their backing. Legislators point to the bill's vague anti-money laundering provisions, low penalties, and possible dangers from foreign-controlled stablecoins.
The following X post explains the letter sent by four senators, listing reasons for rescinding the stablecoin bill:
Criticism mounted as news of a US$2 billion deal between World Liberty Financial (WLFI) and UAE company MGX for the Trump-branded USD1 stablecoin was revealed. The connection of WLFI to the Trump family, as well as USD1's popularity, seems suspicious to the critics.
USD1 has become the seventh-largest stablecoin in the world in a short span, raising concerns. Senator Warren accuses the former President's family of receiving a ’crazy amount of money’ for what she says is a ‘shady crypto deal’ in the following X post:
Following the controversy, WLFI announced the delay of listing USD1 on centralized exchanges, citing regulatory clarity. The delay may hurt USD1's market momentum in a growingly competitive and saturated stablecoin market.
Originally set to come before the House in May, the GENIUS Act now hangs in the balance. As Senate suspicions rise and party tensions boil, the bill has the potential to be stuck on hold forever. Legislators formerly optimistic about enacting regulatory clarity for stablecoins are now playing it safe amid growing scrutiny.
Warren's warning follows a broader campaign for stricter crypto laws. The GENIUS Act controversy highlights the conflict between innovation and integrity in the rapidly developing digital asset sector.
