Revised GENIUS Act Introduced in Senate
A revised version of the GENIUS Act—officially the Guiding and Establishing National Innovation for U.S.—was introduced in the Senate Thursday. The legislation, sponsored by Senate Majority Whip John Thune (R-SD), will be debated during the current session of the Senate.
Billed as a regulatory framework for stablecoins, the bill is sponsored by Senators Cynthia Lummis (R-WY), Tim Scott (R-SC), and Bill Hagerty (R-TN). The measure includes provisions for anti-money laundering (AML) compliance and investor protection, seeking to add transparency to the fast-growing digital asset class.
Trump-Linked USD1 Sparks Political Blowback
The resuscitation of the GENIUS Act came as a bombshell news that World Liberty Financial, a firm linked to Donald Trump, plans to use its stablecoin USD1 to facilitate a $2 billion transaction between Abu Dhabi-based MGX and cryptocurrency exchange Binance.
This deal raised concerns among Democratic lawmakers. Senator Elizabeth Warren (D-MA) rebuked Trump for enabling foreign governments to use cryptocurrency for excessive influence. “A Foreign government-backed dark money fund just announced it will make a $2 billion deal using Donald Trump’s stablecoins,” she wrote in a May 1 announcement.
Warren warned that the GENIUS Act, if passed, would be utilized to make the President and his allies richer. “This is corruption, and no senator should vote for it,” she explained.
$TRUMP Memecoin Fans the Flames
Trump’s growing visibility within the crypto space has attracted extra attention. His memecoin, $TRUMP, recently announced a private gala for its highest 220 holders at Trump National Golf Club in Washington, D.C.
Critics argue that such initiatives blur public service and personal gain. Concerns have been expressed that $TRUMP and USD1 would serve as foreign conduits should they be permitted to go unregulated.
What’s next for the GENIUS Act?
While the authors of the GENIUS Act portray it as a long-overdue regulation, the backlash over Trump’s crypto initiatives risks sidelining the bipartisan support.
With Trump at the helm and leading crypto initiatives, efforts to block the bill may be confronted with uphill battles—even as alarmism over corruption and foreign influence grows in Washington.
