- Democrats are abandoning the GENIUS Act, a bipartisan stablecoin bill, after revelations that Trump-linked World Liberty Financial stands to profit massively from a $2B Abu Dhabi deal. Critics now label the bill a vehicle for “crypto corruption”.
- The controversy centers on Trump’s stablecoin project, which surged into the top ten by market cap and routes 75% of revenue to Trump-affiliated entities.
- Tensions are boiling in Congress, with Senators Schumer and Warren freezing Democratic support and calling for bans on crypto holdings for public officials.
The GENIUS Act—once touted as Washington’s stablecoin breakthrough—is bleeding support. It looks like a massive Abu Dhabi buy‑in to World Liberty Financial detonated the fragile Senate consensus. Democrats now brand the measure a green light for “crypto corruption”.
Senator Chuck Schumer has frozen his caucus, blocking floor commitments until conflict‑of‑interest curbs kick in. Elizabeth Warren circulated a memo demanding a ban on crypto holdings for elected officials and their relatives.
In other words, it all looks very bad, and at the center is the Trump family’s crypto firm.
The company’s new stablecoin surged into the top ten by market cap this week, days after announcing a US$2B (AU$3.11B) deal with an Emirati firm planning to route funds into Binance. Revenue from the coin flows directly to Trump-affiliated entities, which take 75% of the cut.
Add in a memecoin dinner promotion that spiked the TRUMP price over 60% almost overnight, and Democrats now see the legislation as a handout to the president’s wallet.
Tensions Rise in Senate
Rep. Maxine Waters, long a lead voice on crypto oversight, has turned against the entire bill. She blocked a House hearing on Tuesday, walked out in protest, and staged a counter-hearing denouncing Trump’s crypto empire.
She said:
They are legitimizing Trump’s and his family’s efforts to enrich themselves on the backs of average Americans.
US Rep. Maxine WatersBanking‑Committee Democrat Ruben Gallego charges Republicans with ramming the bill forward minus fixes on AML, consumer protection, and national‑security clauses, stating:
You can’t try to f*** us and then say, deal with it.
Ruben Gallego, Banking-Committee Democrat.Majority Whip John Thune has filed cloture on the GENIUS Act, forcing a Thursday test vote. The bill needs sixty ayes; Republicans hold fifty‑three and have lost three inside the tent—Rand Paul, Josh Hawley, and John Kennedy.
Nine Democrats publicly oppose the latest draft, citing undisclosed rewrites.
Related: Trump Dodges Questions on Memecoin Profits Amid Price Plunge
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