Senator Elizabeth Warren (D-MA) strongly criticizes a $2 billion deal between the Trump family and the UAE related to stablecoin, calling it 'potentially corrupt behavior' and urging the Senate to reject the GENIUS Act. Is this a scheme for personal enrichment or an opportunity for crypto growth? Let’s analyze it in detail.
$2 Billion 'Shady' Deal: USD1 And The Trump Family's Involvement
Warren warns of a $2 billion deal between #WorldLibertyFinancial – a company co-founded by President Trump's son, Eric Trump, and crypto investor Zach Witkoff – and MGX, a UAE company backed by the Abu Dhabi investment fund. This deal involves USD1, a new stablecoin being issued, backed by short-term U.S. Treasury bonds, ranking 7th in the global stablecoin market (capitalization of $245 billion, according to CoinGecko). USD1 will serve as the payment currency for MGX's $2 billion investment into Binance. Witkoff announced this deal at a crypto conference in Dubai, alongside Eric Trump.
Warren called this a 'dirty deal' on Twitter Monday (05/05/2025), claiming it allows the Trump family to profit massively from a foreign government. In an interview on Meet the Press, when asked about personal benefits, Trump replied: 'I haven’t considered it,' adding that if the market rises due to his good performance, 'I guess I benefit.' Warren countered: 'This is a deal that smells of corruption.'
GENIUS Act: Controversial Points from Warren
Warren criticizes the GENIUS Act – a bill proposed by Senator Bill Hagerty (R-TN), which was passed by the Senate Banking Committee with bipartisan support in March – for allowing the president and family to exploit stablecoin. This bill establishes the first legal framework for stablecoin in the U.S., but Warren argues that it lacks protective measures, enabling Trump and his family to 'profit from their own financial assets and oversee their own company.'
Last month, Warren accused $TRUMP of using crypto laws for personal gain, paving the way for Elon Musk to 'control your money.' She emphasized: 'Trump promised to reduce costs for Americans, but instead is chasing profits for himself and disrupting the economy for everyone else.'
Democratic Opposition: A Challenge for the GENIUS Act
Although the GENIUS Act is set to be voted on in the Senate this week, the bill is facing opposition from 9 Democratic senators, including 4 who previously supported it in committee. They argue that the bill 'still has many issues,' including national security risks and a lack of oversight for foreign issuers. Warren previously proposed amendments to ban stablecoin use in crime and closely monitor foreign companies, but these proposals were rejected.
Warren warns: 'If not amended, every senator must vote against it – otherwise, they will be complicit in Trump’s corruption.'
Context and Trump's Perspective
Trump defends his crypto strategy, calling it a 'geopolitical race,' saying: 'If we don’t do it, China will.' He asserts that millions of Americans support it, even though the Biden administration previously opposed it. However, Warren argues that the real motivation is personal gain, especially as USD1 grows thanks to a deal with #UAE .
Impact on the Crypto Market
This event brings many complex signals:
Increased legal controversy: Opposition from Warren and Democrats could slow the legal framework for stablecoin, affecting initiatives like Mastercard (stablecoin payments) and Tether Gold (backed by 7.7 tons of gold).
Long-term support: If the GENIUS Act is passed with strict protections, stablecoins like USD1 (7th globally) could boost the market, complementing Bitcoin ($94,800, poised to reach $120,000) and Ethereum ($1,800, soon to upgrade to Fusaka).
Investor sentiment: Warren's skepticism could cause short-term volatility, but the trend of crypto acceptance in the UAE (Dubai investing $8.8 billion in blockchain in the Maldives) still creates positive momentum.
Conclusion: Will the GENIUS Act Shape the Future of Stablecoin?
Senator Warren calls the $2 billion deal between the Trump family and the UAE 'dirty,' urging the Senate to reject the GENIUS Act without anti-corruption protections. While Trump justifies this as a geopolitical strategy, Warren's accusations and opposition from 9 Democrats place the bill in a difficult position. If passed with amendments, the GENIUS Act could pave the way for stablecoin development; if it fails, crypto in the U.S. might face delays. Investors should closely monitor developments this week.
Risk warning: Crypto investments carry high risks due to price volatility and legal uncertainties. Consider carefully before participating. #anhbacong