US Senator Elizabeth Warren Has Taken Swipes at the GENIUS Act

President Donald Trump's plan to roll out robust stablecoin legislation for the US has led to a barrage of unexpected problems.

US Senator Elizabeth Warren has taken swipes at the GENIUS Act for its potential in facilitating an illegal windfall for Trump’s USD1 stablecoin.

The bill, which once enjoyed bipartisan support in Congress, is now being urged to be shot down by Senator Webber.

President Donald Trump’s plan to introduce robust stablecoin legislation in the US has hit a snag.

A rendering of the U.S. Capitol Building is seen through an electric vehicle charging station in New York, March 3, 2023.

The Trump administration is putting a pause on centralized exchange listing, with the firm reportedly waiting for regulatory clarity before proceeding.

The delay may hurt USD1’s chances in the head-to-head rivalry with Tether as it plays catch-up to industry first-movers.

However, with senators pulling back support ahead of a full House vote, the Trump administration is now scrambling to salvage the situation.

Out of the 10 senators who pulled out support for the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, most objected to the lack of money laundering and national security protection rules in the bill.

Senator Elizabeth Warren has also joined in the criticism, poking holes in the bill over concerns that its passage will net the Trump-backed World Liberty Financial (WLFI) an illicit fortune.

The senator hinged her argument on WLFI’s latest deal with UAE-based MGX to lean on the USD1 stablecoin in closing its $2 billion Binance investment.

The MGX arrangement saw the USD1 stablecoin record frenetic daily trading volumes and an increase in its market capitalization.

Senator Webber urged the Senate to reject the GENIUS Act on the grounds of unjust enrichment ahead of a full House vote.

“The Trump family stablecoin surged to 7th largest in the world because of a shady crypto deal with a foreign government that will give them a crazy amount of money,” said Senator Webber.

“The Senate shouldn’t pass a crypto bill this week to facilitate this kind of corruption.”