Senator Warren Sounds Alarm on Crypto Bill Tied to Trump-Backed Token

A controversial stablecoin bill is now facing mounting opposition in Washington, with Senator Elizabeth Warren leading the charge against what she calls a pathway to “crypto corruption.”

The proposed legislation—known as the GENIUS Act—initially gained bipartisan traction but is now rapidly losing support as concerns over national security and regulatory loopholes intensify.

Warren has singled out a high-profile deal involving World Liberty Financial (WLFI), a firm reportedly connected to President Donald Trump, and MGX, a UAE-based company. The deal centers on a dollar-pegged token, USD1, and a massive $2 billion investment allegedly linked to Binance. Since the agreement was announced, USD1 has surged in activity and climbed the ranks to become one of the top stablecoins globally.

Warren warns that this arrangement could enrich political allies while circumventing oversight. She’s urging lawmakers not to greenlight a bill that could, in her words, legitimize shadowy partnerships and weak financial controls.

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The backlash appears to be working—ten senators, including former supporters, have now backed away from the GENIUS Act, citing the bill’s vague enforcement provisions and exposure to foreign influence.

In the fallout, WLFI has paused plans to list its stablecoin on major exchanges, citing the need for regulatory clarity. But with political pressure mounting and the bill’s future uncertain, the project may lose momentum in a stablecoin market already dominated by giants like Tether.

A House vote was expected soon, but with Senate support evaporating, the GENIUS Act is now stalled—caught between calls for crypto innovation and fears of political profiteering.

Alexander Stefanov