Elizabeth Warren Slams GENIUS Act Over Trumps USD1 Crypto Profits
- Senator Elizabeth Warren strongly opposes the GENIUS Act due to concerns over illegal profits linked to Trumps USD1 stablecoin.
- Warrens concerns stem from a deal between World Liberty Financial and UAE-based MGX that boosted demand for USD1.
- The deal used USD1 in a $2 billion Binance transaction, significantly increasing its market ranking.
Senator Elizabeth Warren opposes the GENIUS Act because she views Trumps USD1 stablecoin as generating illegal financial returns. Her worries emerge from World Liberty Financials and UAE-based MGXs agreement, which strengthened the market demand for USD1. Opposition against the bill has increased in the Senate, and now it must pass a key vote in the House.
Elizabeth Warren Fights Bill Over USD1
Elizabeth Warren raised alarms after the USD1 stablecoin saw a sharp rise in volume and market rank. The price increase came after World Liberty Financial agreed with MGX, allowing the usage of USD1 to buy Binances $2 billion acquisition. A reported increase in demand due to this transaction made USD1 the seventh most popular stablecoin worldwide.
Warren believes the UAE agreement allowed WLFI to be affected by foreign influence and unfair profit-making activities that threaten national security. Transparency issues concerning the transaction prompted the senator to push for stricter control over international crypto business transactions. The senators statement intensified the pressure on representatives who had yet to determine their vote ahead of the House vote.
Warrens objections caused ten senators to reverse their original backing of the bill because of security vulnerabilities and a lack of anti-money laundering measures. Many critics assert the GENIUS Act should include more protective elements, even though it once gained bipartisan support. The changing public perception about the bill weakens its forward progress, thus making it harder to move forward.
Warren Pushes Back on Stablecoin Bill
The GENIUS Act, which began as an innovation support program, is being opposed because of concerns about political organizations misuse of its benefits. Congress officials doubt how the bill matches ethical requirements and financial standards. The bills approval risks undesirably giving unauthorized rewards connected to Trumps financial interests.
Before David Sacks predicted the bill had sufficient backing for May passage, support diminished during that period. Warrens critical statements against the administration forced the administration to work double-time to gain senators trust. The House vote for the bill faces increased risk due to the unclear situation.
The removal of the backing has paused all attempts to initiate more legislative talks in the immediate future. The current dialogue within the congressional body shows officials will proceed only when financial oversight gets more robust. The Trump administration has not responded directly to the rising demands for alterations to potential legislation.
WLFI Halts USD1 Listing Amid Uncertainty
World Liberty Financial decided to stop its exchange listing plans for USD1 while waiting for the outcome of the GENIUS Act vote. The temporary hold creates difficulties for its market expansion strategy and its attempts to challenge Tether and other competitors. Projecting regulatory confusion may cause the firm to stumble in its pursuit of a competitive position in this constantly changing stablecoin market.
The passage of the GENIUS Act represented an essential requirement in WLFIs plan because it would have enabled USD1 to work within the extended financial infrastructure. However, the company encounters rising legal obstacles that create challenges in finding new business partnerships. The unclear situation has affected its development plan while delaying technical implementation projects.
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Text source: TronWeekly
