- Warren urges Senate delay on GENIUS Act after $2B UAE crypto deal raises Trump-linked concerns
- USD1 stablecoin under fire as reports link it to MGX investment in Binance via UAE partnership
- Senate debate over GENIUS Act intensifies amid ethics questions tied to foreign stablecoin flows
Senator Elizabeth Warren is pushing the U.S. Senate to pause a vote on the GENIUS Act, a major proposed stablecoin regulation bill.
Her call for delay follows news of a large partnership involving World Liberty Financial, a firm linked to the Trump family, and an investment group from the United Arab Emirates. Warren worries the bill’s timing could unfairly benefit a politically connected stablecoin issuer.
USD1 Stablecoin’s Rise and UAE Investment Deal
The focus is on World Liberty Financial’s USD1 stablecoin, which recently shot up to become the seventh-largest stablecoin globally. This surge happened around the same time as a $2 billion deal involving MGX, an investment firm backed by Abu Dhabi’s sovereign wealth fund Mubadala and artificial intelligence company G42. Reports indicate MGX is using the USD1 stablecoin as part of its investment into the cryptocurrency exchange Binance.
Related: Senator Hagerty’s GENIUS Act Aims to Pass Stablecoin Bill in 100 Days
Senator Warren highlighted this deal publicly, labeling it a “shady crypto deal with the United Arab Emirates.” She alleges the Trump family could financially benefit through the USD1 stablecoin and argues the GENIUS Act’s timing might pave the way for foreign-influenced profits tied to this specific digital asset.
GENIUS Act Hits Roadblocks in Senate
The GENIUS Act (short for Guiding and Establishing National Innovation for US Stablecoins) initially seemed to have support from both parties. However, opposition is mounting after these recent developments. Senator Warren, along with nine other Senate Democrats, is now questioning the bill’s protections against risks like foreign partnerships and money laundering.
Related: 2025 Could Be Stablecoins’ Breakout Year as Adoption Hits Every Level
Adding to the tension, a recent update to the bill by Republican lawmakers reportedly rolled back some safeguards designed to address these very concerns. The debate in the Senate has heated up, making it unclear if the legislation will even reach a vote before the end of the month.
For now, the USD1 stablecoin, pegged to the U.S. dollar and issued by World Liberty Financial, remains under the spotlight due to its sudden volume increase linked to the MGX deal. While the GENIUS Act is still being debated, Warren’s intervention has forced renewed scrutiny on the Trump family’s potential connections and the wider challenges of regulating digital assets.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
