Warren claims USD1 profited from a shady UAE deal.
10 senators have withdrawn support for the GENIUS Act.
WLFI delays listing, awaiting regulatory clarity.
US Senator Elizabeth Warren is urging Congress to block the passage of the GENIUS Act, alleging that the bill may support corrupt gains for President Donald Trump’s USD1 stablecoin project. The legislation, previously having bipartisan backing, is currently under increasing opposition in the Senate.
Concerns Over Illicit Profits and Foreign Deals
Warren objects based on a contentious arrangement between Trump-supported World Liberty Financial Institution (WLFI) and UAE’s MGX. The deal utilised USD1, a stablecoin from WLFI, to bring in the $2 billion investment through Binance. This move caused USD1 to rise to the 7th largest stablecoin by market cap, with trading volumes spiking significantly. Warren voiced her concerns in a public post on X, stating:
She condemned the GENIUS Act for not having sufficient anti-money laundering and national security measures.
Senate Support Wavers
In response to Warren’s comments, 10 senators have pulled their support for the bill, arguing on grounds of national security and compliance. The increasing opposition could stall or kill the bill, which was to be voted on in the House in May. Trump supporter David Sacks previously forecasted an easy passage for the GENIUS Act. The lawmakers’ backlash, however, has made things more difficult for the administration’s plans.
WLFI Listing Delayed
In the absence of regulatory guidance, WLFI has delayed its plans to list on a centralized exchange. The delay is a loss in its quest to compete with large stablecoins such as Tether.
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