Elizabeth Warren Withdraws Support for GENIUS Act Over Eric Trump-Backed USD1 Stablecoin Deal

Senator Elizabeth Warren has withdrawn her support for the GENIUS Act, a stablecoin legislation that once enjoyed bipartisan support, citing concerns over a deal involving the Trump-backed USD1 stablecoin.

Senator Elizabeth Warren has pulled her support for the GENIUS Act, a stablecoin bill that bipartisan support, due to concerns over a deal involving the Trump-backed USD1 stablecoin.

According to Warren, the bill's passage will result in an "illicit fortune" for World Liberty Financial (WLFI), the company behind USD1 and co-founded by Eric Trump and crypto investor Zach Witkoff.

"The Trump family stablecoin surged to 7th largest in the world because of a shady crypto deal with the United Arab Emirates—a foreign government that will give them a crazy amount of money," Warren stated on Thursday.

The Massachusetts senator added, "The Senate shouldn's pass a crypto bill this week to facilitate this kind of corruption."

The bill, which would establish the first U.S. regulatory framework for stablecoins, passed the Senate Banking Committee in March with bipartisan support. However, at least ten senators have since pulled their support over concerns about insufficient anti-money laundering protections and national security risks.

When questioned by reporters about potential conflicts of interest, President Trump responded, "I haven't even looked," adding, "If I own stock in something and I do a good job and the stock market goes up, I guess I'm profiting."

Senator Warren attempted to amend the bill to prohibit stablecoins used in criminal activities and impose oversight on foreign firms, but her proposals were defeated. She warned that without proper safeguards, the GENIUS Act would enable a sitting president to personally profit from financial instruments used by foreign governments.

The political turmoil has had direct consequences for World Liberty's business plans. The company has reportedly paused its plans for listing on centralized exchanges, awaiting regulatory clarity before proceeding.

This delay could impact USD1's competitive position against industry leaders like Tether. According to data from CoinGecko, USD1 is currently the seventh-largest stablecoin in a global market that exceeds $245 billion in circulation.

The stablecoin is backed by short-term U.S. Treasuries, similar to many other tokens in the market. The deal was publicly announced by Witkoff during a crypto convention in Dubai, where he appeared alongside Eric Trump.

"The GOP leadership is greenlighting the grift by rushing a flawed bill to pass this week," said Senator Warren.

The bill is expected to be included in a broader financial legislation package that also includes raising the nation's debt ceiling.