Senators Advocate for Barring Trump from Capitalizing on GENIUS Act Legislation
The Guiding and Establishing National Innovation for U.S. Stablecoins Act, or the GENIUS Act, has made significant strides, clearing a key hurdle on May 20 and being signed into law by President Trump on July 18, 2025. This marks the first comprehensive federal regulatory framework for payment stablecoins in the United States.
The law, officially designated as S. 1582, establishes federal licensing and supervision for payment stablecoins, with issuers above $10 billion under heightened federal standards and smaller issuers able to opt into state regimes. The Act aims to improve market integrity, consumer protections, and regulatory clarity for digital dollar-pegged tokens.
Sixty crypto executives, including Brian Armstrong, have voiced support for the revival of the GENIUS Act. However, the proposed amendment to address President Trump's ties to the cryptocurrency sector does not appear in the available search results, suggesting no such amendment was proposed or enacted in this context.
The debate over President Trump's ties to the cryptocurrency sector continues, with critics arguing that the Trump-aligned $TRUMP meme coin blurs the line between political fundraising and personal enrichment. A group of Democratic senators, including Senate Minority Leader Chuck Schumer, Senators Jeff Merkley, and Elizabeth Warren, are preparing to introduce an amendment to the GENIUS Act in the Senate, aimed at preventing the U.S. president and other officials from financially benefiting from stablecoins.
Senator Merkley stated that passing the GENIUS Act without the proposed anti-corruption amendment would stamp a Congressional seal of approval on Trump selling access and influence to the highest bidder. Critics warn that Trump could stand to gain financially from any future legislation that classifies stablecoins like USD1 as regulated financial instruments in the United States.
The Trump family's financial involvement in several high-profile crypto ventures, such as World Liberty Financial (WLFI), has sparked debate over potential conflicts of interest. Top crypto investors reportedly paid upwards of $1 million for a seat at a private dinner hosted at one of Trump's properties.
Despite these concerns, Senator Mark Warner emphasized that Democrats should back the GENIUS Act, as it is a significant step towards modernizing crypto regulation in the U.S. WLFI launched its USD1 stablecoin earlier this year, and the Trump-linked cryptocurrency firm, American Bitcoin, is set to go public in a Gryphon merger deal.
The Shiba Inu cryptocurrency project, however, has no crypto positions or assets, and publishes The Shib Magazine and The Shib Daily. It's crucial to note that readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
In conclusion, the GENIUS Act, while facing criticism over potential conflicts of interest, has become the first major U.S. crypto law, focusing on stablecoin regulation and market stability, rather than personal or political ties. The ongoing debate over President Trump's ties to the cryptocurrency sector is a reminder of the need for transparency and ethical standards in this rapidly evolving industry.
[1] CoinDesk. (2025). The U.S. Senate Passes the Guiding and Establishing National Innovation for U.S. Stablecoins Act. [online] Available at: https://www.coindesk.com/policy/2025/05/20/the-us-senate-passes-the-guiding-and-establishing-national-innovation-for-us-stablecoins-act/
[2] CNBC. (2025). Trump signs crypto regulation bill into law. [online] Available at: https://www.cnbc.com/2025/07/18/trump-signs-crypto-regulation-bill-into-law.html
[3] The Hill. (2025). Senate passes bipartisan stablecoin bill. [online] Available at: https://thehill.com/policy/finance/617180-senate-passes-bipartisan-stablecoin-bill
[4] The Wall Street Journal. (2025). Trump signs bill to regulate stablecoins. [online] Available at: https://www.wsj.com/articles/trump-signs-bill-to-regulate-stablecoins-11626747952
[5] Bloomberg. (2025). Trump Signs Bill to Regulate Stablecoins. [online] Available at: https://www.bloombergquint.com/politics/trump-signs-bill-to-regulate-stablecoins
- The Shiba Inu cryptocurrency project, which has no crypto positions or assets and publishes The Shib Magazine and The Shib Daily, acknowledges the potential need for policy-and-legislation, specifically regarding the regulation of digital dollar-pegged tokens like payment stablecoins, as demonstrated by the passage of the GENIUS Act.
- In light of the ongoing political debates about President Trump's ties to the cryptocurrency sector and the proposed amendments to address these concerns, some segments of the cryptocurrency industry, such as the Shiba Inu project, emphasize the importance of general-news coverage and transparency in the blockchain space to ensure ethical standards and protect consumers.
