- Warren claims that USD1 has benefited from a shady deal with the UAE.
- 10 senators have withdrew support for the Genius Act.
- The WLFI list delays the list, waiting for regulation clarity.
US senator Elizabeth Warren urged Congress to hinder the passage of the Genius Act, saying that the bill could support corrupt obtained for President Donald Trump's USD1 Stablecoin project. The law, previously having a bipartisan backbone, is currently under the rise of opposition to the Senate.
The concerns of the forbidden income and foreign deals
Things Warren are based on a contention between supported by the World Liberty Institution (WLFI) and the UAE MGX. The deal uses USD1, a stablecoin from WLFI, to bring $ 2 billion investment through Binance. This step has led to USD1 to rise to the -7 largest stablecoin through the market cap, with spiking trading volumes significantly.
Warren announced his concerns in a public post on X, stating:
“The Family Stablecoin family has moved forward … because of a shady deal with the crypto in the United Arab Emirates – a foreign government that will give them a crazy amount of money.”
He condemned the Genius Act for not having enough anti-money laundering and National security measures.
Senate supports
In response to Warren's comments, 10 senators pulled their support for the bill, focusing on the basis of national security and compliance. Increasing opposition may stop or kill the bill, which will be voted at home in May.
Trump's supporter David Sacks has previously posted an easy way for the Genius Act. The backlash of lawmakers, however, made it more difficult for administration plans.
WLFI list delayed
In the absence of regulatory guidance, WLFI delayed its plans to list in a centralized exchange. The delay is a loss in its search to compete with large stablecoins such as Tether.
Highlighting Crypto news today:
Tether plans the new launch of US Stablecoin in the middle of Washington's outreach
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