Senator Elizabeth Warren has withdrawn her support for the GENIUS Act due to conflicts with the Trump family's stablecoin project, prompting significant political interest.
Withdrawal of Support for the GENIUS Act
Warren’s withdrawal raises questions about potential conflicts of interest with the Trump-backed USD1 stablecoin project, casting doubt on the bill's future and its implications for stablecoin regulation.
Political Reactions and Consequences
Democratic leaders, including Senators Jeff Merkley and Chuck Schumer, have responded by calling for amendments and caution against the bill's passage while Senator Kirsten Gillibrand plays a key role in drafting new regulations to address these concerns.
Impact on the Stablecoin Market
The USD1 stablecoin, linked to a $2 billion deal with UAE entities, has surged to become the 7th largest in the world. This prompts concerns about the integrity of such financial dealings and their influence on U.S. economic policy.
Warren's withdrawal highlights the ongoing tension between cryptocurrency innovation and regulation, with potential repercussions for international partnerships and U.S. legislation.
