The GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins—is on the verge of becoming the first comprehensive U.S. crypto legislation. But as it advances through Congress, Democratic lawmakers are raising alarms about potential corruption risks tied to former President Donald Trump’s crypto dealings, urging key amendments to the bill.
Democrats Push Back Against Trump’s Crypto Ties
According to Axios, a coalition of Senate Democrats is seeking to revise the bill to include specific protections that would prevent public officials, particularly members of Trump’s family, from using the legislation to profit from the fast-growing stablecoin market.
Senators Jeff Merkley, Elizabeth Warren, and Senate Majority Leader Chuck Schumer are leading the amendment push, with Gary Peters, Jack Reed, Chris Murphy, and Michael Bennet signing on as co-sponsors. Their goal: ensure that the legislation contains provisions to block influence-peddling and personal enrichment by politically connected individuals.
Despite having previously withdrawn support over these concerns, most Democrats ultimately voted for the GENIUS Act in a recent Senate vote—with Schumer as the key exception. Now, they are warning that they may reconsider their backing unless the anti-corruption provisions are added before final passage.
The Trump Family’s Crypto Ventures Spark Scrutiny
Fueling Democratic concerns is the Trump-linked crypto company World Liberty Financial (WLFI), which recently launched a new stablecoin, USD1. The coin has already been selected as the settlement currency for a $2 billion investment by Abu Dhabi-based MGX into Binance, the world’s largest crypto exchange.
This high-profile international deal, combined with growing fears of political influence and foreign entanglements, has sparked investigations by top Democrats into WLFI’s fundraising practices and potential abuse of political power.
GENIUS Act Advances Despite Growing Tensions
Introduced by Senator Bill Hagerty and co-sponsored by Kirsten Gillibrand and Cynthia Lummis, the GENIUS Act is designed to bring stability to the U.S. crypto space by regulating stablecoin issuers through federal licensing, mandatory audits, and full asset backing requirements.
However, as the bill edges closer to becoming law, the rising pressure from Democrats threatens to stall or reshape its final form. Still, Senator Mark Warner has urged colleagues to proceed, arguing that while concerns about Trump’s crypto ties are valid, they shouldn’t overshadow the need to regulate an industry that continues to expand rapidly.
