The United States Senator Elizabeth Warren urges the congress to reject the law on genius, a bill that could open the way to what it calls “cryptographic corruption”.
The bill – The guide and the establishment of national innovation for the United States Stablecoins Act – has gathered steam after initial bipartisan support. At least 10 senators have now reversed their support, citing the problems of lax money laundering guarantees and national security threats.
Rising token fosters backlash
Until now, the most lively critic of the bill is Warren, who has underlined a recent agreement involving World Liberty Financial (WLFI), a company linked to the American president Donald Trump and the MGX, a company based in the United Arab Emirates.
The agreement implies WLFI USD1 Stablescoins and an investment of $ 2 billion linked to Binance. Warren says that the agreement has pushed the activity of the USD market in over -off and helped it to go up to become the seventh largest stablecoin in the world.
The stablecoin of the Trump family reached the 7th largest number in the world due to a shady crypto agreement with the United Arab Emirates – a foreign government which will give them a mad sum of money.
The Senate should not adopt a Crypto bill this week to facilitate this type of corruption. pic.twitter.com/4is9kgpxqb
– Elizabeth Warren (@senwarren) May 4, 2025
She said that the Trump family could earn a “mad money” from what they described as a “shaded cryptographic agreement” with a foreign government. “The Senate should not approve a Crypto bill this week to allow this type of corruption,” she wrote on X.
Image: The Shib Daily
Support for the Genius Act fades quickly
Support for Genius has decreased considerably. Ten senators, including Ruben Gallego, have now abandoned their support. They increased red flags concerning the incapacity of the bill to explicitly define how it would prevent illegal financial activities. It is also feared that legislation lacks adequate sanctions for stabbing issuers who violate the rules.
Senators are also concerned about the potential threat of stable stables controlled abroad to American financial systems. In their joint declaration, they warn that without more strict regulation, foreign powers could handle gaps in the bill.
US Senator Elizabeth Warren. Image: ABC News
Nouvelle: Senator @Rubengallego And nine other senators have just published a joint declaration concerning the updated text of the law on the engineering which was published last week, saying that they could not support the bill in its current form. The group notes several concerns, notably insufficient … pic.twitter.com/876m4wcvda
– Eleanor Terrett (@elean branch) May 3, 2025
WLFI postpones the list of exchanges
For WLFI, timing could not be worse. The company now postpones the USD1 list on centralized exchanges. WLFI awaits regulatory clarity before continuing, but the lost momentum can be damaging for the prospects of stablecoin on the already saturated market.
BTCUSD trading at $96,641 on the 24-hour chart: TradingView.com
Missing a clear track to follow, USD1 could have trouble competing with Tother. The uncertainty now creates tensions for the cryptographic enterprise supported by Trump, which expected that the engineering law will offer the framework it would use to grow.
The voting of the room remains uncertain
The Genius Act was about to vote in the House in May. But with the support that fades in the Senate, there is no way to know when – or if – this vote will occur.
Congress convivial legislators believed that the bill would introduce essential regulations stable walk. Now he is caught in a political storm.
Based on reports, the Trump administration has not provided for this level of resistance. But as questions develop around the links of WLFI water and USD overvoltage, opponents of the bill are committed. The growing skepticism of the Senate could end up completely blocking the bill.
Reuters / Brian Snyder star image, tradingView chart
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