Senator Warren Calls for Delay on Digital Asset Bill Amid Trump Stablecoin Concerns

Senator Elizabeth Warren has urged the Senate to delay the passage of a controversial digital asset bill, citing potential corruption linked to the Trump family’s stablecoin project. Warren highlighted the involvement of the Trump family’s world liberty financial in a significant deal with the United Arab Emirates, which could have substantial financial implications.

Warren’s concerns stem from the Trump family’s stablecoin, operated by World Liberty Financial, which has recently gained attention due to its connection with a $2 billion deal with the Emirati investment firm MGX. This firm, backed by Abu Dhabi’s sovereign wealth fund Mubadala and AI firm G42, announced its use of the stablecoin to facilitate its investment in Binance. The stablecoin, pegged to the dollar, has surged to become the seventh largest in the world, according to Warren.

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The situation has become more complex with the ongoing debate over the GENIUS Act, a landmark piece of legislation aimed at establishing federal regulations for stablecoins. This bill has become a flashpoint in the Senate, with bipartisan talks encountering significant hurdles. Nine key Senate Democrats have voiced opposition to revisions unveiled by GOP lawmakers, creating a roadblock in the negotiations.

The GENIUS Act seeks to create the first-ever regulatory framework for stablecoins, and its passage is a key priority of Trump’s financial policy agenda. However, Democrats have expressed concerns that the revised proposal fails to adequately address issues such as money laundering and the broader risks to the financial system. These concerns have led to growing friction behind the scenes, with some Democrats backing away from their earlier support for the bill.

Republicans, meanwhile, remain hopeful that they can win over enough Democratic support to move the bill forward. GOP aides are optimistic that further revisions could address some of the concerns raised by Democrats, though the clock is ticking with hopes of a floor vote by the end of the month. Despite this, the ongoing negotiations signal that reaching a consensus on this issue may take more time than initially anticipated.