Highlights:
- Senator Warren opposes the GENIUS Act due to concerns over the Trump family’s stablecoin deal with the UAE.
- GENIUS Act faces opposition from Senate Democrats, citing risks like money laundering and inadequate oversight.
- Trump administration’s hopes for GENIUS Act passing are fading due to growing opposition in Senate.
President Donald Trump’s plan to introduce strong stablecoin laws in the US is facing new challenges as key lawmakers raise concerns. Massachusetts Senator Elizabeth Warren has refused to support the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. Her claims are based on WLFI’s recent deal with UAE-based MGX. The two plan to use the USD1 stablecoin to complete a $2 billion investment in Binance.
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The MGX deal led to a big rise in the USD1 stablecoin’s daily trading volumes and market cap. Elizabeth Warren urged the Senate to reject the GENIUS Act, arguing that it could allow certain individuals to profit unfairly ahead of the House decision. She criticized the Trump family stablecoin for becoming the 7th largest in the world due to a questionable deal with the UAE, which could give them a lot of money. “The Senate shouldn’t pass a crypto bill this week to facilitate this kind of corruption,” Warren wrote on Sunday.
The Trump family stablecoin surged to 7th largest in the world because of a shady crypto deal with the United Arab Emirates—a foreign government that will give them a crazy amount of money.
The Senate shouldn’t pass a crypto bill this week to facilitate this kind of corruption. pic.twitter.com/4is9KgpXQb
— Elizabeth Warren (@SenWarren) May 4, 2025
GENIUS Act Faces Increased Challenges Ahead of Vote
The debate over the GENIUS Act has grown more complicated. Senator Bill Hagerty introduced the GENIUS Act. It passed the Senate Banking Committee in March with support from both parties. A floor vote is expected this week. The bill aims to establish the first set of rules for stablecoins, a key goal in Trump’s financial policy.
🚨 Stablecoin regulation update! 🚨
The GENIUS Act is up for a vote in the Senate Banking Committee. If passed, it could bring much-needed clarity to the U.S. stablecoin market.
More oversight for big issuers, clear rules for all. Good or bad for crypto? 👇 #Stablecoins…
— CryptoNews24 (@info_cryptonews) March 11, 2025
However, Democrats are concerned that the revised version doesn’t properly address issues like money laundering and financial risks. On Saturday, nine Senate Democrats said they wouldn’t support the bill as it is. This included four senators who had voted to move the bill forward last month. Their joint statement said the bill still has many issues that need to be addressed, including national security risks and inadequate oversight of foreign issuers.
The Trump administration had hoped the GENIUS Act would clear all legislative challenges. David Sacks had expected it to pass in May, but support has dropped. Senators like Elizabeth Warren reversing their stance before the House vote has surprised the Trump administration.
Warren warned that if the GENIUS Act passes without protections, it could allow a sitting president to personally profit from financial tools used by foreign governments. “Donald Trump promised lower costs for the American people. Instead, he’s running grifts to make more money for himself and breaking the economy for everyone else,” she said.
If the bill doesn’t pass, the biggest setback will be for the Trump-backed WLFI. WLFI is holding off on its centralized exchange listing as it waits for clearer regulatory guidelines to move ahead with confidence. However, USD1 is available for trading on decentralized platforms such as Uniswap and PancakeSwap, where users can swap it with other cryptocurrencies.
Alderoty Criticizes Warren’s Opposition to Stablecoin Bill
Stuart Alderoty, chief legal officer at Ripple, recently criticized Senator Elizabeth Warren. He claimed her opposition to crypto regulations is hurting efforts to protect stablecoin users. Alderoty described her approach as a relentless “war on crypto.”
Liz @SenWarren’s war on crypto is so all-consuming, she’ll block bipartisan stablecoin legislation designed to protect consumers—just to take a cheap political shot. https://t.co/2LquWxXuOa
— Stuart Alderoty (@s_alderoty) May 4, 2025
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