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- Elizabeth Warren links Trump-backed stablecoin to foreign deals and financial misconduct.
- GENIUS Act loses support as senators raise alarm over national security and money laundering loopholes.
- WLFI halts exchange listing as stablecoin legislation faces major Senate resistance and ethical concerns.
Senator Elizabeth Warren describes the GENIUS Act as a significant threat to Congress legislation. Senator Warren states that the GENIUS Act would create unlawful financial gains for Trump allies through their support of a debatable stablecoin initiative.
Warren reveals that World Liberty Financial Inc. (WLFI) and Trump should expect large financial gains from the current legislation. She accentuated the recent inception of a $2 billion investment that UAE-based MGX executed through the USD1 stablecoin.
Together, they significantly boosted USD1’s trading numbers and market valuation, which drew criticism from ethical standpoints. According to Warren, the surge in USD1’s trading volume originated from outside interference and advantages granted to Trump associates.
Her X platform post urged the US government to avoid enabling foreign intervention from regulatory weakness areas for political gains. In a Senate meeting, the lawmaker demanded that her fellow lawmakers ban the corrupt method that enables money manipulation.
Until recently, the GENIUS Act enjoyed bipartisan backing through its legislative process despite having the initials Guiding and Establishing National Innovation for US Stablecoins. Support for the legislation has deteriorated due to ten senators who highlighted national security threats and inadequate money laundering safeguards in the bill.
Opposition Grows as Trump-Linked Stablecoin Faces Congressional Hurdles
Before recent developments, advocates of the bill expected the final version to be passed in May. However, rising opposition and substantial public criticism make it doubtful that this legislation will be passed.
The uncertainties surrounding the matter have forced WLFI to suspend its initial plan to list USD1 on major centralized exchanges. The firm stands by until regulatory conditions become clearer so the GENIUS Act can pass Congress, but the bill may remain stuck there.
Critics believe stronger safeguards must be incorporated into the bill, as they feel the present measure will compromise US financial stability. Several concerns about foreign government control of American political stablecoins have materialized in the current situation.
The bill’s final destination remains uncertain as major political and financial groups inside Washington maintain their opposing stands. Categorizing advancements over regulatory oversight is the current challenge for legislators who balance the crypto debate.
The congressional bill officially named the GENIUS Act faces growing political controversy within the United States Senate. Warren’s corruption allegations about the bill have placed it at the forefront of crypto lawmaking while testing congressional accountability practices in politics.
Also Read: Vitalik Buterin Breaks Silence on the Most Overlooked Part of Crypto
