- Warren urges delay of GENIUS Act over Trump family’s $2B UAE-backed stablecoin deal, citing corruption and foreign influence risks.
- Trump-linked stablecoin hits 7th largest globally, raising bipartisan concerns about oversight and national security.
- Democrats grow wary of the GENIUS Act, warning it lacks safeguards against financial abuse despite GOP amendments.
Senator Elizabeth Warren has urged the U.S. Senate to delay a bill that crucially examines digital assets, saying that she is worried about a $2 billion stablecoin deal tied to the Trump family, with the intervention of a foreign government. The Massachusetts Democrat told a chair of the House Appropriations Committee that the project would bring the risk of a lot of corruption and foreign influence, in particular, because it represents a significant investment from the United Arab Emirates.
This was drawn to people’s attention over the weekend when Warren pointed on social media to a crypto venture, World Liberty Financial, that it says is backed by Trump family members. A large financial deal with UAE-based firm MGX has propelled the firm’s U.S. dollar pegged stable coin to a market value of the 7th largest in the world.
Warren blasted the deal, writing, “The Trump family crypto crossed into 7th biggest in the world because of an overpriced shody crypto deal with the United Arab Emi, a foreign government who will make them bazillions of music.”
Abu Dhabi’s sovereign wealth fund, Mubadala, backed the Trump-linked stablecoin investment from MGX, alongside AI giant G42 and the company’s $2 billion investment in Binance. The scale of the deal has raised concerns and prompted Warren and other Democrats to charge that money laundering, sanctions evasion, and lack of oversight in the digital asset sector are all “red flags.”
Warren Criticizes GENIUS Act Amid Controversy
Warren remarks a day after the Senate debates the GENIUS Act, which would set up the first U.S. federal framework for stablecoins. Bipartisan contention has focused on the legislation, which is central to Donald Trump’s financial and crypto policy agenda.
Initially welcomed by some Democrats, the original version of the GENIUS Act was pushed back by Republican lawmakers, who unveiled an updated version. Politico reported that the lack of protection against illicit financial activities and systemic risks has worried at least nine Democratic senators.
Behind closed doors, Democratic lawmakers have grown increasingly skeptical about the bill’s current draft’s ability to provide enough checks on stablecoins’ potential misuse and safeguard the U.S. financial system from volatility and abuse.
Republicans Push to Advance GENIUS Act
However, due to the backlash, GOP leaders are pressing for their bills to go through. Republican aides said Democratic concerns have been taken into account, and further amendments are being considered aimed at being more stringent on issuers and having stronger anti-money laundering provisions.
Yet with greater political sway and increasingly questioning the Trump family’s role in the crypto world, the initial timeline for a floor vote on the GENIUS Act, the Trump family’s crypto bill peeking out, might be extended. With her latest intervention, Warren has personally injected herself into the crypto policy debate, showing some lines where foreign influence could be and blurring lines between public service and private interest.
“This isn’t about crypto alone,” noted one Senate aide. “It had to do with the integrity of our financial system, and whose hands it would be in who gets to shape its future.”
