As the U.S. Senate prepares to vote on the landmark GENIUS Act – the first federal bill regulating stablecoins – intense scrutiny surrounds President Trump’s crypto interests. Democrats are raising alarm over Trump’s deep financial ties to World Liberty Financial, a crypto firm partially owned by his family, and its recent launch of USD1, a stablecoin allegedly backed by U.S. Treasuries.
The timing is explosive. USD1’s debut and a $2 billion investment from the Emirati firm MGX coincide with the GENIUS Act’s final push. Critics argue the bill could not only boost stablecoin adoption but also entrench financial mechanisms that personally benefit the sitting president.
A NEW KIND OF CONFLICT: TRUMP’S CRYPTO EMPIRE
World Liberty Financial was launched in late 2024, with President Trump dubbed “Chief Crypto Advocate” and his sons promoted as “Web3 Ambassadors.” Since then, the company has unveiled meme coins like $TRUMP and $MELANIA, generating hundreds of millions in transaction fees. Despite the volatile nature of these tokens, the Trump family earns profits regardless of market performance.Now, the controversy has escalated with the launch of USD1. Unlike meme coins, USD1 claims to be a dollar-backed stablecoin. MGX’s $2 billion USD1 purchase to fund a deal with Binance has raised eyebrows, especially with Binance’s founder under legal scrutiny in the U.S.
Senators Elizabeth Warren and Jeff Merkley have formally requested detailed records from MGX and Binance, alleging a potential abuse of power and financial favoritism stemming from Trump’s dual role as president and crypto beneficiary.
GENIUS Act: A Catalyst for Growth or Trump’s Trojan Horse?
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins of 2025) aims to bring order to the rapidly expanding stablecoin market, mandating one-to-one backing by U.S. dollars or equivalents. It is championed as a gateway to institutional crypto adoption, with firms like Apple, Meta and Uber eyeing stablecoin integrations.
But the bill now faces accusations of being hijacked by broader agendas. Over 120 amendments have been proposed, many having little to do with crypto. These include measures on credit card fees, presidential trade powers and even price controls.
Senator John Thune, who spearheaded the bill’s passage, abandoned his promise of an open amendment process, prompting fury from Democrats who saw their proposed safeguards blocked.
ELIZABETH WARREN’S WARNING: A REPEAT OF 2008?
In a fiery Senate floor speech, Senator Warren compared the GENIUS Act to the 1999 derivatives deregulation that preceded the 2008 financial crisis. She warned that legitimizing lightly regulated stablecoins without proper oversight could destabilize the financial system and enable historic corruption.
“President Clinton didn’t own a derivatives company. President Trump owns a stablecoin company,” she declared, citing USD1’s rapid rise and growing use by foreign governments seeking influence.
She detailed how MGX’s USD1-funded transaction potentially tied foreign investment directly to Trump’s benefit, calling it “the greatest corruption scandal in American history.”
