Warren Calls Trump-Backed Crypto Deal ‘Corruption in Plain Sight’
U.S. Senator Elizabeth Warren strongly criticizes the cryptocurrency deals between Donald Trump and the United Arab Emirates because she fears massive corruption will enter the market.
Before the Senate floor vote this week, Senator Warren criticized the GENIUS Act due to its risk of ethics violations through President Trump’s cryptocurrency ties. The stablecoin USD1 started by World Liberty Financial represents the focus of Warren’s concerns.
Warren criticizes DeFi project World Liberty Financial and its stablecoin USD1 upon its launch, specifically due to its reported connections to Donald Trump. The token operates with U.S. Treasuries as collateral while waiting to help process Abu Dhabi’s $2 billion investment in MGX, a Binance-linked venture.
GENIUS Act Sparks Major Ethics Debate
During his appearance at a blockchain conference in Dubai last week, MGX chairman Steve Witkoff stood beside Eric Trump while announcing their deal, which led Warren to assert that Trump used his presidential position to enrich his family. Senator Warren warned during a press briefing on Capitol Hill:
“This is a bill that would make it even easier for the president and his family to profit off their own stablecoin and oversee their own financial company. If we allow this legislation to move forward, we’re not just legalizing conflicts of interest we’re greenlighting the grift.”
Senator Bill Hagerty (R-TN) received Senate Banking Committee approval in March for his GENIUS Act and it will reach a floor vote soon. Policies in support of stablecoin businesses need proper regulation as Senator Warren views them as vehicles for organized fraud.
The Data of CoinGecko shows USD1 ranks seventh among stablecoin varieties yet most of its backing originates from United States Treasury bills, giving rise to concerns about the influence of interconnected political figures on international digital finance.
According to Warren, Trump manipulates cryptocurrency to establish a secret wealth network. Time is running out so action must begin now.
As the important vote draws closer, the disagreement about the GENIUS Act has turned into a major point of conflict in the cryptocurrency regulation debate. Trump’s return to the financial sector makes this battle even more uncertain.
