Senate Democrats Oppose GENIUS Act
On May 7, 2025, Senate Democrats withdrew their support for the bipartisan GENIUS Act, a proposed stablecoin regulation bill, citing concerns over potential conflicts of interest involving former President Donald Trump and his family's cryptocurrency ventures. The Trump family's firm, World Liberty Financial, recently secured a $2 billion investment from an Abu Dhabi-backed company to purchase a stablecoin it offers. This development raised alarms among Democrats, who fear the legislation could inadvertently benefit Trump's personal financial interests .
In response, Senate Democrats introduced the End Crypto Corruption Act, aiming to prohibit federal officials and their families from investing in or endorsing digital assets. Senator Elizabeth Warren criticized the GENIUS Act for lacking safeguards against corruption and emphasized the need for amendments to address these issues . Senator Jeff Merkley, the bill's sponsor, stated that the current conditions allow public influence to be improperly swayed by personal crypto investments of political leaders .
Despite the controversy, Senate Republicans plan to proceed with a procedural vote on the GENIUS Act, scheduled for Thursday. However, with at least nine Democratic senators and some Republicans expressing opposition, the bill's passage remains uncertain. Senate Majority Leader Chuck Schumer has urged caution, advocating for unity and additional changes to the bill . The outcome of this legislative effort could significantly impact the future of cryptocurrency regulation in the United States.
