Elizabeth Warren Leads Opposition to Trump administration's Push for Stablecoin Legislation

Senator Elizabeth Warren is urging colleagues to reject the bipartisan legislation that would create a framework for private stablecoins in the U.S., as the Trump administration ramps up efforts to pass the bill.

The Massachusetts Democrat is urging fellow senators to reject the bill due to President Trump’s connections to the USD1 (USD) stablecoin, issued by World Liberty Financial.

World Liberty Financial, which is co-founded by Eric Trump and crypto investor Zach Witkoff, has seen its USD1 stablecoin surge to become the 7th largest in a market that exceeds $245 billion in tokens.

At the heart of Warren’s concerns is a deal between World Liberty Financial and MGX, an Emirati firm backed by Abu Dhabi’s sovereign wealth, to use USD1 as the settlement currency for a $2 billion investment by MGX into Binance, the global crypto exchange.

“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 for no good reason,” Warren wrote on X, formerly known as Twitter.

The senator has been open about her opposition to the GENIUS Act, the Guiding and Establishing National Innovation for US Stablecoins Act. She attempted to amend the bill to prohibit stablecoins used in crimes and impose oversight on foreign firms, but her proposals were defeated.

Political Fallout

The controversy has led to a shift in support for the legislation, with ten senators now urging colleagues to reject the bill due to a lack of anti-money laundering and national security protection rules.

Four senators who previously supported the bill in committee will oppose it in its current form, while another six senators, including two Democrats, have pulled their names from a letter of support for the bill.

“We remain committed to working together to craft legislation that can provide clarity and certainty for this important technology, but this bill creates numerous issues that must be addressed,” the four senators said in a joint statement.

The president has defended his crypto push as a geopolitical race. “If we don't do it, China's going to do it,” he said, adding that millions of Americans support it despite earlier opposition from the Biden administration.

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