U.S. Senator Elizabeth Warren has publicly urged colleagues to block the Stablecoin bill known as the GENIUS Act. She warned that it would facilitate “corruption” by allowing President Trump’s family to profit from their USD1 stablecoin.
The GENIUS Act, sponsored by Senators Bill Hagerty and Kirsten Gillibrand, aims to establish a comprehensive regulatory framework for dollar‑pegged stablecoins. Proponents argue that it would bolster U.S. leadership in digital assets, ensure consumer protections, and close regulatory gaps that drive stablecoin issuance offshore.
Warren Opposes GENUIS Act Over USD1 Deal
A United Arab Emirates (UAE) investment firm, MGX, recently announced it would use the Trump family’s World Liberty Financial USD1 stablecoin to facilitate a $2 billion investment in Binance. Blockchain data reveals that USD1’s trading volumes hit new highs following the announcement, becoming the seventh‑largest stablecoin by market capitalization globally.
Senator Warren labeled the MGX transaction “shady” in an X (formerly Twitter) post, warning it represented a risky blend of foreign government money and a presidential family’s private financial interests. Nonetheless, MGX’s strategy aims to deploy USD1 for fast settlement on BNB Chain and Ethereum to bypass traditional banking’s slow processes.
Asserting that USD1’s “surge to the 7th largest in the world because of a shady crypto deal with the United Arab Emirates,” the Senator maintained that the Senate should not pass the crypto bill this week.
Following Warren’s post, nine Senate Democrats, including Sherrod Brown and Ruben Gallego, withdrew their support, arguing the revised bill fails to guard against financial crime and national‑security threats. Meanwhile, failure to address Warren’s foreign‑issuer concerns may pit Democrats against a bill that once enjoyed broad bipartisan support.
Stablecoins Gain Traction
Stablecoins have become a trending topic lately as crypto firms try to gain market share and compete with giants such as Tether and Circle. For example, CTW recently reported that Ethena Labs is expanding the reach of its USDe by integrating it and its staking counterpart, sUSDe, into the TON ecosystem. The move aims to make these tokens available within Telegram’s built‑in wallet and non‑custodial wallets like Tonkeeper and MyTonWallet.
Nations are also not left behind, as Abu Dhabi is advancing its digital finance ambitions by launching a dirham‑pegged stablecoin, AE Coin. The fully compliant stablecoin is designed to serve retail and institutional users across the United Arab Emirates (UAE).
