Senator Elizabeth Warren is advocating against the GENIUS Act, alleging that the bill may facilitate corrupt profits related to Donald Trump’s USD1 stablecoin project.
Concerns Over Corruption and UAE Deals
Warren expresses her concerns regarding a deal between the Trump-backed World Liberty Financial Institution (WLFI) and the UAE. The agreement utilized USD1 to draw in a $2 billion investment through Binance. This led to a significant rise in USD1, making it the seventh largest stablecoin by market cap.
Senate Support Withdrawal
In response to Warren's comments, 10 senators have withdrawn their support for the bill, citing national security and compliance issues. The growing opposition could stall or kill the bill, which was scheduled for a vote in the House in May.
WLFI Listing Delayed
In the absence of regulatory guidance, WLFI has delayed its plans to list on a centralized exchange. This delay poses a setback in their efforts to compete with large stablecoins like Tether.
The situation surrounding the GENIUS Act continues to escalate, with rising concerns about corruption and national security that may significantly impact the future of stablecoin USD1 and its support.
