The U.S. Senate’s push to regulate stablecoins through the GENIUS Act has hit political turbulence due to former President Donald Trump’s$TRUMP expanding crypto ventures. Trump’s launch of the $TRUMP memecoin and his family's stablecoin, USD1—issued by World Liberty Financial—have raised major ethical concerns.
USD1, now a top 10 global stablecoin, was reportedly part of a $2B investment involving the UAE and Binance. Senators Elizabeth Warren and Jeff Merkley argue this may violate U.S. anti-corruption laws and the Constitution's Emoluments Clause, suggesting foreign influence on U.S. policy.
Initially backed by both parties, the GENIUS Act is now losing Democratic support. Lawmakers demand stronger safeguards to prevent elected officials from personally benefiting from crypto regulations.
Trump$TRUMP
denies any conflict, stating his assets are in a trust managed by his children. Still, critics warn the situation risks turning stablecoin policy into a "roadmap for corruption."
This controversy could reshape the regulatory future of crypto in the U.S., with growing calls to separate innovation from political self-interest.