A significant development is unfolding in the US Senate regarding the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act). While the bill, aimed at regulating stablecoins, recently advanced, top Democrats are now moving to add an amendment to address potential conflicts of interest related to the President's involvement in the crypto industry.
Here's what you need to know:
The GENIUS Act: This bipartisan bill seeks to establish the first comprehensive federal regulatory framework for stablecoins in the US. It advanced in the Senate on May 20, after facing an earlier procedural setback.
Trump Family's Crypto Ties: Critics are raising concerns about President Donald Trump and his three sons' involvement in World Liberty Financial (WLFI), which launched its USD1 stablecoin in March. An Abu Dhabi-based investment firm has reportedly stated it would use USD1 to settle a $2 billion investment in Binance, potentially allowing the Trump family to profit from transaction fees.
Proposed Amendment: Senate Minority Leader Chuck Schumer, along with Senators Elizabeth Warren and Jeff Merkley, are planning to file an amendment to the GENIUS Act. This amendment aims to block a US president from personally profiting from stablecoins while in office.
"Anti-Corruption Amendment": Senator Merkley stated that passing the GENIUS Act without this amendment would "stamp a Congressional seal of approval on Trump selling access and influence to the highest bidder."
Why it Matters: This move highlights growing concerns in Washington about potential conflicts of interest as digital assets become more mainstream and regulatory frameworks are established. The amendment seeks to ensure that public officials do not benefit from legislation they oversee.
This situation underscores the intricate relationship between politics, traditional finance, and the evolving cryptocurrency landscape. We'll be watching closely to see how this amendment impacts the future of stablecoin regulation in the US!
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