Sen. Elizabeth Warren (D-Mass.) opposed the GENIUS Act, popularly known as the stablecoin bill, on the Senate floor Monday, citing worries that it would enable President Donald Trump’s “crypto corruption.”
What Happened: Warren remarked that the Republican-led legislation would supercharge the stablecoin market and the reach and profitablity of the Trump family-backed USD1.
“For the first time in history, this bill will make our president the regulator of his own financial product,” Warren said. “If the Congress does nor fix it here, it will be aiding and abetting his corruption everytime USD1 is used to finance a corrupt deal.”
Warren also raised concerns that the bill would give terrorists and drug cartels easier access to money through stablecoins. While stablecoins such as Tether (CRYPTO: USDT) have been used for illegal activities, a survey by blockchain analytics firm Chainalysis found that the vast majority of cryptocurrency transaction activity, around 99.6%, is used for legal purposes.
The White House didn't immediately return Benzinga's request for comment on Warren’s allegations.
See Also: Crypto Traders Who Secured A Dinner With Donald Trump Walked Away With Major Profits, Says Analysis
Taking a diametrically opposite view, Anthony Scaramucci, a known cryptocurrency advocate and former White House Communications Director, argued that the GENIUS Act would benefit the U.S., its citizens, the dollar, banks, fintech startups, and the cryptocurrency sector. He warned that Democrats opposing the bill would be committing “political suicide.”
Why It Matters: This isn’t the first time Warren has expressed skepticism towards cryptocurrency. Last week, she labeled USD1 as a potential national security threat and a conduit for Trump’s corruption.
USD1, which has risen to become the fifth-largest stablecoin by capitalization, has been chosen to close a $2 billion deal between Abu Dhabi investment firm MGX and cryptocurrency exchange Binance, as announced by Eric Trump at a recent cryptocurrency conference.
A Trump-affiliated organization holds a 60% share in the parent company of the firm behind the stablecoin, World Liberty Financial, while his son Eric Trump sits on the board.
Warren deemed deals like these as a way for big companies and foreign governments to evade scrutiny and pay off Trump personally.
Shutterstock/Sheila Fitzgerald
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
