The United States urges Sen. Elizabeth Warren to refuse Congress to reject the Genius Act, a bill that potentially gives way to what he specified “crypto corruption.”
The bill – the guide and establishment of national change for the US Stablecoins Act – accumulates steam after initial support for Bipartisan. At least 10 senators today have returned to their support, citing issues of LAX laundering protections and national security threats.
Rising token fosters backlash
The sharp critic of the bill to this day is Warren, who has taught a recent deal involving World Liberty Financial (WLFI), a company linked to US president Donald Trump, and MGX, a firm based in the United Arab Emirates.
The deal involves wlfi's USD1 Stablecoin and a $ 2 billion investment connected to Binance. Warren said the agreement pushed the USD1 market activity to the great hope and helped it rise to become the seventh largest stablecoin in the world.
The Family Stablecoin family has moved forward in the world's largest world due to a shady deal with the United Arab Emirates – a foreign government that will give them a crazy amount of money.
The Senate should not pass a Crypto bill this week to facilitate this type of corruption. pic.twitter.com/4is9kgpxqb
– Elizabeth Warren (@senwarren) May 4, 2025
He admitted that the Trump family could get a “crazy amount of money” from what he described as a “shady deal with crypto” to a foreign government. “The Senate should not approve a crypto bill this week to enable this type of corruption,” he wrote to X.
Image: The Shib Daily
Support for the Genius Act is rapidly fading
Support for Genius Act has fallen significantly. Ten senators, including Ruben Gallego, have now collapsed with their support. They raised red flags about the inability of the bill to determine how to prevent illegal financial activities. There are also concerns that the law does not have sufficient penalties for those who give stablecoin violating the rules.
Senators are also concerned about the potential threat of foreigners controlled by foreigners in US financial systems. In their joint statement, they warn that without stricter regulations, foreign powers could manipulate loopholes in the bill.
US Senator Elizabeth Warren. Image: ABC News
🚨New: Senator @Rubengallego And nine other senators have just released a joint statement about the updated text of the Genius Act released last week, saying they cannot support the bill in its current form. Group note has many concerns, including inadequate … pic.twitter.com/876M4WCVDA
– Eleanor Terrett (@eleanorterrett) May 3, 2025
WLFI postpones exchange list
For WLFI, the timing may not be worse. The firm is now postponing the USD1 list to centralized exchanges. WLFI is waiting for regulation clarity before proceeding, but the lost momentum can damage Stablecoin's prospects in the saturated market.
BTCUSD trading at $96,641 on the 24-hour chart: TradingView.com
Lack of a clear way forward, USD1 may have difficulty competing with Tether's wishes. Today's uncertainty is the creation of tension for adventure supported by Trump, which is expected to offer the Genius Act to offer the outline it will use to grow.
Home vote remains unsure
The Genius Act prepared to go to a home vote in May. But with the support of the Senate, there is no way of knowing when – or if – that vote will take place.
Crypto-friendly lawmakers in Congress believe the bill will introduce more necessary regulations to Stablecoin Market. Today, it was caught in a political storm.
According to reports, the Trump administration does not expect this level of resistance. But as the questions around the UAE ties of WLFI and the USD1 climb, the opponents of the bill are digging. Senate's growing doubt can end in obstructing the fee as a whole.
Featured image from Reuters/Brian Snyder, chart from TradingView
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