The United States government is close to enacting its first crypto legislation, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. However, Democratic lawmakers are pushing to include protections against corruption from public officials, especially the family of President Donald Trump.
According to a report from Axios, a group of senators insists the bill needs to be amended to prevent Trump and his inner circle members from profiting from stablecoins and selling influence to the highest bidder.
Senators Push to Amend GENIUS Act
The GENIUS Act will establish the first regulatory framework for stablecoins in the U.S. Senator Bill Hagerty introduced the bill in February, with co-sponsorship from Senators Kirsten Gillibrand and Cynthia Lummis.
If enacted, the bill will establish a federal licensing and supervisory framework for stablecoins, requiring their issuers to undergo regular security audits. The legislation will limit stablecoin issuance to licensed entities and prohibit trading assets that are not fully backed.
Before the bill passed in the Senate earlier this week, Democrats had raised concerns about potential conflicts with Trump’s crypto investments. Although they had previously withdrawn their support, most of them, except for Senate Minority Leader Chuck Schumer, eventually voted yes.
Concerns Over Trump’s Crypto Ventures
With the GENIUS Act a few steps away from becoming law, Democrats once again insist that amendments be made to include protections against corruption. Senators Jeff Merkley, Elizabeth Warren, and Schumer are pushing to file the amendment before the legislation passes the Senate.
Senators Gary Peters, Jack Reed, Chris Murphy, and Michael Bennet are co-sponsoring the amendment. Although most of these lawmakers have voted in favor of the bill, sources familiar with the matter revealed that they may withdraw their support if the legislation lacks protections against corruption.
As the push for amendment continues, Senator Mark Warner, a Democrat, insists the bill should be passed regardless of concerns about the Trump family. He said the possibility of corruption should not blind the U.S. government to the broader reality that blockchain technology is here to stay.
These concerns come as the Trump family’s crypto business, World Liberty Financial (WLFI), launches a new stablecoin, USD1. The asset has already scored a deal to become the settlement currency for Abu Dhabi-based MGX’s $2 billion investment in crypto exchange Binance.
Meanwhile, top Democrat lawmakers have launched an investigation into Trump’s crypto venture over concerns of illegal fundraising, abuse of political power, and foreign influence.
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