Caution Flags Raised on Trump-Linked Stablecoin Deal
Senator Warren Accuses $2B Trump-UAE Deal of Being Underhanded, Advocates Against Cryptocurrency Bill in Senate
Senator Elizabeth Warren (D-MA) has raised red flags about President Donald Trump's ties to the crypto industry, claiming a recent $2 billion deal with the UAE could lead to corruption if passed by the Senate.
Trump's Crypto Surge Under Fire
Warren took to Twitter, stating, "The Trump family stablecoin surged to 7th largest in the world because of a questionable crypto deal with the United Arab Emirates-a foreign government that'll doloads of cash. The Senate shouldn't pass a crypto bill this week to facilitate this kind of malarkey."
Trump defended his crypto push by highlighting it as a geopolitical race, saying, "If we don't do it, China's going to. Millions of Americans back it, despite earlier opposition from the Biden administration."
The Massachusetts senator was alluding to USD1, a new stablecoin backed by short-term U.S. Treasuries issued by World Liberty Financial-a company co-founded by Trump's son, Eric, and crypto investor Zach Witkoff.
World Liberty's USD1 is slated to serve as the settlement currency for MGX's $2 billion investment into Binance, a global crypto exchange backed by Abu Dhabi's sovereign wealth.
GENIUS Act Faces Resistance
Warren's latest warning accompanied a video of Meet the Press moderator Kristen Welker questioning Trump about potential profiteering through the crypto industry. Trump responded by saying he hasn't even looked and if his stocks perform well due to his leadership, he might profit.
Warren criticized the GENIUS Act last week, saying the bill "would make it even easier for the president and his family to profit off their own stablecoin and oversee their own financial company." The bill, sponsored by Sen. Bill Hagerty (R-TN), is expected to receive a floor vote this week.
However, nine Senate Democrats who initially supported the bill in committee have now stated they will oppose it due to concerns over national security risks and lack of oversight of foreign issuers.
Stablecoin Bill Concerns
The GENIUS Act, if passed, may enable a sitting president to personally profit from financial instruments tied to foreign governments. Warren has warned that this legislation "risks aiding and abetting Trump's corruption."
Last month, Warren accused Trump of manipulating crypto legislation for personal gain, stating that Congress was paving the way for Trump and others like Elon Musk to control people's money.
As of now, the search results do not reveal any specific conflicts of interest related to the Trump-linked stablecoin deal involving the UAE and the GENIUS Act. However, we'll continue to monitor developments on this matter.
Edited by Sebastian Sinclair
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- Elizabeth Warren, a Democratic senator, has voiced concerns about President Trump's ties to the crypto industry, specifically a recent $2 billion deal with the UAE, believing it could lead to corruption if passed by the Senate.
- Trump's push for crypto has come under scrutiny, with Warren accusing the Trump family's stablecoin of surging to the 7th largest in the world due to a questionable crypto deal with the United Arab Emirates.
- The GENIUS Act, expected to receive a floor vote this week, has faced resistance from Warren who believes it would make it easier for the president and his family to profit off their own stablecoin and oversee their own financial company.
- On a global crypto exchange, Binance, World Liberty Financial's USD1 stablecoin, co-founded by Trump's son Eric and crypto investor Zach Witkoff, is slated to serve as the settlement currency for MGX's $2 billion investment into Binance.
- Nine Senate Democrats who initially supported the GENIUS Act have now stated they will oppose it due to concerns over national security risks and lack of oversight of foreign issuers.
- Warren has warned that if the GENIUS Act is passed, it may enable a sitting president to personally profit from financial instruments tied to foreign governments, potentially aiding and abetting Trump's corruption.
