Senator Warren Proposes Amendment to Block Trump Family Crypto Wallet

U.S. Senator Elizabeth Warren has announced plans to introduce an amendment to the GENIUS Act, with the aim of preventing the Trump family from launching a cryptocurrency wallet. The GENIUS Act, formally known as the Guiding and Establishing National Innovation for US Stablecoins Act, is currently under debate in the U.S. Senate. This act is designed to regulate stablecoins, a type of cryptocurrency that maintains a stable value, often pegged to a reserve asset like the U.S. dollar.

The amendment proposed by Senator Warren is a direct response to reports suggesting that the Trump family is planning to launch a Trump-branded crypto wallet. This potential move has sparked concerns among lawmakers regarding possible conflicts of interest and the necessity for stricter regulations within the cryptocurrency sector. The GENIUS Act, if enacted, would only permit stablecoin issuers with a total market capitalization of less than $10 billion to opt for regulation under a state framework, thereby excluding larger entities like the Trump family's potential venture.

The introduction of this amendment coincides with the Senate's efforts to streamline over 60 proposed amendments to the GENIUS Act. Lawmakers are under pressure to finalize the bill this week to avoid delays, which could push the vote into the next week. The crypto industry has been advocating for lawmakers to expedite the process and pass the stablecoin rules without extensive amendments, citing the need for regulatory clarity in the rapidly evolving digital asset landscape.

Senator Warren's amendment is part of a broader effort to address concerns about the potential risks associated with cryptocurrencies. Critics of the GENIUS Act, including Senator Warren, have expressed worries that the entrenchment of crypto could lead to more industry bailouts and financial instability. The latest version of the GENIUS Act has been criticized for lacking provisions to address these concerns, prompting calls for more stringent regulations.

The Trump family has denied any connection with the Trump Wallet, a digital wallet that has sparked controversy within the family's crypto camps. The launch of such a wallet would likely face significant regulatory scrutiny, especially in light of Senator Warren's proposed amendment. The debate over the GENIUS Act and its amendments highlights the ongoing tensions between innovation and regulation in the cryptocurrency industry. As the Senate continues to negotiate the bill, the outcome will have far-reaching implications for the future of stablecoins and digital wallets in the United States.