Summary:
Senator Elizabeth Warren has withdrawn her support for the GENIUS Act, a bill aimed at regulating U.S. stablecoins, due to concerns over potential conflicts of interest linked to USD1, a stablecoin backed by Eric $TRUMP Trump and Zach Witkoff under World Liberty Financial (WLFI). The controversy intensified after WLFI secured a $2 billion deal with UAE-based MGX, using USD1 for settlement, which Warren labeled “shady” and possibly corrupt.
Warren’s criticism has led 10 senators to drop support for the bill, citing national security and anti-money laundering concerns. Her proposed amendments to strengthen oversight were rejected. As a result, WLFI has delayed exchange listings for USD1 pending regulatory clarity.
Despite USD1 becoming the 7th largest stablecoin, its future, and that of the GENIUS Act, remains uncertain amid growing political scrutiny and ethical questions surrounding the Trump family's financial involvement.