{"id":25213,"date":"2025-05-05T13:31:38","date_gmt":"2025-05-05T13:31:38","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=25213"},"modified":"2025-05-05T13:31:38","modified_gmt":"2025-05-05T13:31:38","slug":"senator-rips-genius-act-alleges-trump-cashing-in-on-usd1-coin","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=25213","title":{"rendered":"Senator Rips GENIUS Act, Alleges Trump Cashing In On USD1 Coin"},"content":{"rendered":"
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United States Sen. Elizabeth Warren is urging Congress to reject the GENIUS Act, a bill that would potentially pave the way for what she terms \u201ccrypto corruption.\u201d<\/p>\n

The bill \u2013 the Guiding and Establishing National Innovation for US Stablecoins Act \u2013 has been gathering steam after initial bipartisan support. At least 10 senators now have reversed their support, citing issues of lax money laundering safeguards and national security threats.<\/p>\n

Rising Token Fosters Backlash<\/h2>\n

The bill\u2019s sharpest critic so far is Warren, who pointed to a recent deal involving World Liberty Financial<\/a> (WLFI), a company linked to US President Donald Trump, and MGX, a firm based in the United Arab Emirates.<\/p>\n

The deal involves WLFI\u2019s USD1<\/a> stablecoin and a $2 billion investment connected to Binance. Warren says the agreement pushed USD1\u2019s market activity into overdrive and helped it rise to become the seventh-largest stablecoin in the world.<\/p>\n

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The Trump family stablecoin surged to 7th largest in the world because of a shady crypto deal with the United Arab Emirates\u2014a foreign government that will give them a crazy amount of money.<\/p>\n

The Senate shouldn\u2019t pass a crypto bill this week to facilitate this kind of corruption. pic.twitter.com\/4is9KgpXQb<\/a><\/p>\n

\u2014 Elizabeth Warren (@SenWarren) May 4, 2025<\/a><\/p>\n<\/blockquote>\n

She claimed that the Trump family could gain a \u201ccrazy amount of money\u201d from what she described as a \u201cshady crypto deal\u201d with a foreign government. \u201cThe Senate shouldn\u2019t approve a crypto bill this week to enable this type of corruption,\u201d she wrote on X.<\/p>\n

\"\"<\/p>\n

Support For GENIUS Act Fades Quickly<\/h2>\n

Support for the GENIUS Act<\/a> has fallen significantly. Ten senators, including Ruben Gallego, have now dropped their support. They\u2019ve raised red flags regarding the bill\u2019s inability to define explicitly how it would prevent illegal financial activities. There are also concerns that the legislation lacks adequate penalties for stablecoin issuers who violate rules.<\/p>\n

The senators also worry about the potential threat of foreign-controlled stablecoins to US financial systems. In their joint statement, they caution that without stricter regulations, foreign powers could manipulate loopholes in the bill.<\/p>\n

\"\"<\/p>\n

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\"\ud83d\udea8\"NEW: Senator @RubenGallego<\/a> and nine other senators just issued a joint statement regarding the updated text of the GENIUS Act that was released last week, saying they cannot support the bill in its current form. The group notes several concerns, including insufficient\u2026 pic.twitter.com\/876m4wCVda<\/a><\/p>\n

\u2014 Eleanor Terrett (@EleanorTerrett) May 3, 2025<\/a><\/p>\n<\/blockquote>\n

WLFI Postpones Exchange Listing<\/p>\n

For WLFI, the timing could not be any worse. The firm is now postponing listing USD1 on centralized exchanges. WLFI waits for regulatory clarity before proceeding, but the lost momentum can be damaging to the stablecoin\u2019s prospects in the already saturated market.<\/p>\n

<\/p>\n

Lacking a clear way forward, USD1 might find it difficult to compete with the likes of Tether. The uncertainty now is creating tension for the Trump-backed crypto venture, which had been expecting the GENIUS Act to offer the framework that it would use to grow.<\/p>\n

House Vote Remains Uncertain<\/p>\n

The GENIUS Act was poised to go to a vote in the House in May. But with support fading in the Senate, there\u2019s no way of knowing when \u2014 or if \u2014 that vote will occur.<\/p>\n

Crypto-friendly lawmakers in Congress had believed the bill would introduce much-needed regulation to the stablecoin<\/a>\u00a0market. Now, it\u2019s caught up in a political tempest.<\/p>\n

Based on reports, the Trump administration didn\u2019t anticipate this level of resistance. But as questions grow around WLFI\u2019s UAE ties and the USD1 surge, opponents of the bill are digging in. The Senate\u2019s growing skepticism could end up blocking the bill altogether.<\/p>\n

Featured image from REUTERS\/Brian Snyder, chart from TradingView<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

United States Sen. Elizabeth Warren is urging Congress to reject the GENIUS Act, a bill that would potentially pave the way for what she terms \u201ccrypto corruption.\u201d The bill \u2013 the Guiding and Establishing National Innovation for US Stablecoins Act \u2013 has been gathering steam after initial bipartisan support. At least 10 senators now have […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-25213","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/25213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25213"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/25213\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}