GENIUS Act may legitimize Trump’s family-controlled stablecoin, USD1, despite corruption concerns.
Senate Democrats accuse Trump of blending public office and crypto profits through World Liberty.
Over 120 amendments were debated, but key anti-corruption measures were blocked before the vote.
GENIUS Act vote sparks uproar over Trump-linked stablecoin and crypto influence as Democrats demand answers, citing national security risks and historic corruption concerns.
SENATE FACES FIRESTORM AS GENIUS ACT VOTE LOOMS
As the U.S. Senate prepares to vote on the landmark GENIUS Act – the first federal bill regulating stablecoins – intense scrutiny surrounds President Trump’s crypto interests. Democrats are raising alarm over Trump’s deep financial ties to World Liberty Financial, a crypto firm partially owned by his family, and its recent launch of USD1, a stablecoin allegedly backed by U.S. Treasuries.
The timing is explosive. USD1’s debut and a $2 billion investment from the Emirati firm MGX coincide with the GENIUS Act’s final push. Critics argue the bill could not only boost stablecoin adoption but also entrench financial mechanisms that personally benefit the sitting president.
A NEW KIND OF CONFLICT: TRUMP’S CRYPTO EMPIRE
World Liberty Financial was launched in late 2024, with President Trump dubbed “Chief Crypto Advocate” and his sons promoted as “Web3 Ambassadors.” Since then, the company has unveiled meme coins like $TRUMP and $MELANIA, generating hundreds of millions in transaction fees. Despite the volatile nature of these tokens, the Trump family earns profits regardless of market performance.
Now, the controversy has escalated with the launch of USD1. Unlike meme coins, USD1 claims to be a dollar-backed stablecoin. MGX’s $2 billion USD1 purchase to fund a deal with Binance has raised eyebrows, especially with Binance’s founder under legal scrutiny in the U.S.
Senators Elizabeth Warren and Jeff Merkley have formally requested detailed records from MGX and Binance, alleging a potential abuse of power and financial favoritism stemming from Trump’s dual role as president and crypto beneficiary.
GENIUS ACT: A CATALYST FOR GROWTH OR A TROJAN HORSE?
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins of 2025) aims to bring order to the rapidly expanding stablecoin market, mandating one-to-one backing by U.S. dollars or equivalents. It is championed as a gateway to institutional crypto adoption, with firms like Apple, Meta and Uber eyeing stablecoin integrations.
But the bill now faces accusations of being hijacked by broader agendas. Over 120 amendments have been proposed, many having little to do with crypto. These include measures on credit card fees, presidential trade powers and even price controls.
Senator John Thune, who spearheaded the bill’s passage, abandoned his promise of an open amendment process, prompting fury from Democrats who saw their proposed safeguards blocked.
ELIZABETH WARREN’S WARNING: A REPEAT OF 2008?
In a fiery Senate floor speech, Senator Warren compared the GENIUS Act to the 1999 derivatives deregulation that preceded the 2008 financial crisis. She warned that legitimizing lightly regulated stablecoins without proper oversight could destabilize the financial system and enable historic corruption.
“President Clinton didn’t own a derivatives company. President Trump owns a stablecoin company,” she declared, citing USD1’s rapid rise and growing use by foreign governments seeking influence.
She detailed how MGX’s USD1-funded transaction potentially tied foreign investment directly to Trump’s benefit, calling it “the greatest corruption scandal in American history.”
STABLECOINS AND SHADOW BANKING RISKS
Warren and other critics highlighted that GENIUS opens the door for Big Tech and conglomerates to issue private digital currencies, essentially privatizing monetary control. Community banks warn it could drain local deposits, while Chainalysis reports that over 60% of illicit crypto use now involves stablecoins.
Foreign stablecoins like Tether are also in focus. Despite being based offshore, they could access U.S. markets via loopholes in the GENIUS Act. One recent case involved a Russian national using Tether to evade U.S. sanctions – further fueling security concerns.
FINAL PUSH WITHOUT FINAL FIXES
Although some Democrats initially supported GENIUS hoping to add consumer protections, national security guardrails and conflict-of-interest provisions, most of these were blocked. Amendments proposed to limit Trump’s gains, restrict Big Tech from issuing money, strengthen CFPB powers, and close loopholes for foreign issuers were all sidelined.
Senator Lisa Blunt Rochester, who backed the bill out of committee, expressed frustration. “I hoped that there would be an open amendment process… that’s what I heard Leader Thune say.”
WHAT COMES NEXT?
Despite heated opposition, the GENIUS Act advanced with bipartisan backing. If it clears the final Senate vote, it could reach the president’s desk by July – potentially becoming the first U.S. stablecoin law.
Supporters claim it will provide overdue legal clarity for crypto markets. But detractors warn that without critical changes, the law could amplify financial fragility, consumer exploitation and political corruption.
Whether GENIUS becomes a blueprint for blockchain’s future or a cautionary tale of unchecked power remains to be seen. For now, one truth stands clear – the intersection of crypto and politics has never looked more combustible.
〈GENIUS Act Vote Sparks Uproar Over Trump-Linked Stablecoin〉這篇文章最早發佈於《CoinRank》。
