- A group of senior Democrat senators are reportedly planning to file an amendment to the GENIUS Act, aimed at preventing the use of stablecoins to facilitate bribery and corruption of senior government officials.
- News of the amendment comes after the bill cleared a procedural hurdle earlier this week with the support of 18 Democrat senators.
- Trump’s crypto czar, David Sacks, told CNBC earlier in the week he expects the bill will pass the Senate with “significant bipartisan support”.
Three Democratic Senators will propose an amendment to the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS), aimed at preventing Donald Trump and other senior government officials from profiting from stablecoins, according to a May 22 report from Axios.
The move comes after a May 19 vote in which 18 Senate Democrats sided with Republicans to advance the bill, allowing it to progress to a full debate in the chamber and inching it one step closer to becoming law. However, it appears Democrats haven’t given up on trying to ensure the bill contains safeguards aimed at minimising the potential for stablecoins to be used to facilitate bribery and corruption.
Senate Democratic Leader Chuck Schumer, along with Senators Jeff Merkley and Elizabeth Warren, are expected to file the amendment in the coming days with the specific intention of preventing Trump, in particular, from profiting from stablecoins.
“Passing the GENIUS Act without our anti-corruption amendment stamps a Congressional seal of approval on Trump selling access and influence to the highest bidder,” Senator Merkley wrote on X.
The concerns around stablecoins have grown more urgent following the March launch by the Trump family-backed DeFi project, World Liberty Financial (WLFI), of its own stablecoin known as USD1. Shortly after its launch, this Trump-backed stablecoin was used by an Abu Dhabi investment firm to make a US$2 billion (AUD$3.1 billion) investment in the cryptocurrency exchange Binance — a transaction that several Democrat senators have requested be investigated.
Democrats are now worried that Trump and other administration insiders could use legislation legitimising the use of stablecoins in financial transactions to profit personally, raising serious conflicts of interest and increasing the likelihood of undue foreign influence on US policy.
Related: Senate Removes Trump-Specific Crypto Provisions Ahead of GENIUS Stablecoin Bill Vote
Bill “Going To Pass”, Says Crypto Czar
On May 21, prior to publication of the Axios report, Trump’s crypto czar David Sacks told CNBC’s ‘Closing Bell Overtime’ that he thinks the GENIUS Act is “going to pass” into law.
We have every expectation now that it’s going to pass.
David Sacks, Crypto CzarSacks said the bill has “significant bipartisan support”, adding “we already have over $200 billion in stablecoins — it’s just unregulated.”
If we provide the legal clarity and legal framework for this, I think we could create trillions of dollars of demand for our Treasuries practically overnight, very quickly.
David Sacks, Crypto CzarSacks didn’t answer questions around Democrat concerns over a lack of bribery and corruption safeguards in the text of the bill.
Democratic Lawmaker Proposes ‘Stop Trump In Crypto Act’
Similar legislation, known as the ‘Stop TRUMP In Crypto Act of 2025,’ was yesterday introduced to Congress by Rep. Maxine Waters, the ranking Democrat on the House Financial Services Committee.
While the act targets Donald Trump — it would ban senior government officials, including the President and Vice-President from launching or owning their own crypto assets while in office.
Specifically the bill would prevent Trump from issuing, sponsoring, promoting, or receiving any compensation from the “sale, marketing, or mining or any digital asset in the United States” while in office. It would also prevent Trump from engaging in crypto insider trading while he’s in office, meaning he couldn’t buy or sell digital assets that he has privileged, non-public information about.
This legislation comes as Trump prepares to wine and dine the top holders of his own personal memecoin, $TRUMP, on the evening of May 22.
Related: Justin Sun to Attend Trump’s Crypto Dinner as SEC Chair Faces Memecoin Probe
“Donald Trump is preparing to dine with the top donors of his memecoin who’ve made him, and his family, richer,” Rep. Waters said. “For all we know, Russia, China, or even North Korea could be buying Trump’s crypto to secure favors from the White House.”
As it happens, the top holder of $TRUMP is Justin Sun, the Chinese founder of Tron and accused serial fraudster with close links to the Chinese Communist Party. So maybe those pesky Democrats are right to have some misgivings.
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