According to sources, Senator Elizabeth Warren has strongly opposed the GENIUS Act and has called the recent $2 billion crypto deal shady. The USD1 stablecoin is connected to Trump, and the United Arab Emirates is involved in this deal.
This week, the bill is set for a Senate vote, and Senator Elizabeth has given a warning that there might be the possibility of conflicts of interest, which is linked to the USD1 stablecoin, which was created by Eric Trump and is now used in crypto deals that are backed by foreign money.
Elizabeth Warren Criticizes Stablecoin Bill for Potential Loopholes
U.S. Senator Elizabeth Warren (D-MA) has raised a new concern about the stablecoin bill, which was proposed by the Senate; she said that it is a risky loophole.
She said that if the GENIUS Act is passed without making any important changes, then it would allow President Donald Trump and his family to make personal profits from the Cryptocurrency deals that are connected to foreign governments.
Senator Elizabeth Warren is particularly worried about the USD1 stablecoin, which is backed by Trump and is issued by World Liberty Financial, which is a company that was started by Eric Trump and crypto investor Zach Witkoff.
The stablecoin has quickly grown and has become the 7th largest in the world because of its major and controversial deal with MGX, which is a UAE-based firm and is also supported by the government’s wealth fund of Abu Dhabi.
On X, Warren strongly criticized the deal in a post; she said that the Trump family’s stablecoin has become the 7th biggest in the world because of a suspicious crypto deal made with the United Arab Emirates.
This deal has given them a huge amount of money. The Senate should not approve a crypto law this week, which will allow this kind of corruption to happen.
The GENIUS Act Under Fire
The GENIUS Act, which is officially called the Guiding and Establishing National Innovation for US Stablecoin Act, was designed to set clear rules for the stablecoin in the U.S. It was started with the support from Republicans as well as Democrats, but the recent controversies have caused split in this support.
Senator Elizabeth Warren has strongly opposed this bill and said that it does not do enough to stop money laundering, foreign control, and politicians from making money for themselves. She tried to add stricter rules, but those changes were not accepted during the committee process.
Trump Dismisses Concerns
President Trump is now supporting Cryptocurrency, but there was once a time when he was against it, and he now has dismissed the worry about his family’s role in the industry. In an interview with Meet the Press, he denied that he is not directly involved with the USD1 stablecoin.
He called the stablecoin project a patriotic action and said that if it is not done by us, then China will do it. He also mentioned that millions of Americans support Cryptocurrency and suggested that the criticism from Democrats was motivated by politics.
But Senator Elizabeth Warren is not backing down. She quickly responded to this and said that Trump is using national laws to make money for himself, and she has called his defense ridiculous.
Conclusion
This week, the Senate is getting ready to vote on the GENIUS Act, and Elizabeth Warren is taking a strong stand against what she calls a scam. Warren has turned the technical policy issue into a major political debate by highlighting the Trump family’s financial connection and foreign funds.
The future of stablecoin regulations is at risk, and it is clear that Elizabeth Warren has made this clear about more than just Cryptocurrency; it is now about the ethics, transparency, and integrity of American democracy.
FAQs
1. When did Senator Elizabeth Warren criticize the $2 billion stablecoin deal?
Senator Warren, on Thursday, May 1, 2025, publicly criticized the $2 billion stablecoin deal.
2. What did Senator Warren say in her recent statement?
She called the transaction a “shady crypto deal” and raised concerns about corruption and conflicts of interest related to the GENIUS Act.
3. Why is Warren concerned about the GENIUS Act?
Warren is worried that if the GENIUS Act passes, it could let Trump and his family profit from crypto deals linked to foreign governments.
4. What is Eric Trump’s role in the USD1 stablecoin?
Eric Trump co-founded World Liberty Financial, the company behind the USD1 stablecoin, which is at the center of the controversy.
Glossary
USD1 Stablecoin: A stablecoin supported by the U.S. dollar and connected to Trump’s company.
MGX Firm: A UAE-based company involved in the USD1 stablecoin deal.
GENIUS Act: A U.S. Senate bill concerning stablecoin regulation
World Liberty Financial: The company was co-founded by Eric Trump, behind the USD1 stablecoin.
Sources
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