Senator Elizabeth Warren (D-MA) issued a sharp critique of the GENIUS Act during a Senate address on Monday, warning that the proposed legislation could endanger the U.S. financial system due to its links to President Donald Trump’s cryptocurrency ventures.
Crypto Bill Sparks Political and Regulatory Alarm
The GENIUS Act, which cleared a procedural Senate vote (66–32) earlier this week, aims to formalize a regulatory framework for stablecoins in the U.S. However, Warren argues the bill opens a dangerous precedent by potentially allowing the sitting president to oversee a financial product in which he has a personal stake.
“This isn’t just a conflict of interest—it’s a conflict with national stability,” Warren said. She referred specifically to USD1, the stablecoin issued by Trump-affiliated World Liberty Financial, warning that its widespread adoption under the GENIUS Act could increase financial risk.
Warren added, “This legislation empowers a financial product linked directly to the president while diminishing oversight and guardrails, setting the stage for economic turmoil.”
Trump’s Expanding Crypto Influence Under Scrutiny
Concerns over Trump’s growing crypto presence have intensified in recent weeks. Reports that USD1 may be used to close a major deal between Binance and Abu Dhabi-based MGX sparked new criticism from Democratic lawmakers, with some raising questions about national security and foreign leverage in U.S.-backed digital assets.
Meanwhile, Trump’s upcoming May 22 gala dinner for $TRUMP meme coin holders—a crypto asset tied to his name—has drawn bipartisan attention. While Republicans praise his blockchain engagement as innovation-friendly, Democrats see it as a serious ethical red flag.
Representative Maxine Waters (D-CA) previously staged a walkout during a joint hearing, saying that a sitting president profiting from crypto “undermines faith in federal financial oversight.”
Warren: Crisis Could Be Imminent Without Oversight
Warren’s speech outlined a grim forecast, suggesting that a future financial crisis could be catalyzed by unchecked growth in the crypto space—especially if driven by politically entangled products.
“The combination of lax regulation, political profiteering, and crypto’s volatility makes for a dangerous mix,” Warren said. “We’ve seen this play out in 2008. We shouldn’t have to learn the same lesson again.”
She also criticized KYC (Know Your Customer) frameworks, calling them inadequate if not coupled with meaningful corporate accountability and law enforcement consequences for security failures.
GENIUS Act Moves Forward, But Debate Continues
Despite Warren’s objections, the bill has passed a key hurdle and is now set for a full Senate vote after Memorial Day. Supporters argue that a clear national framework for stablecoins is overdue, and that federal recognition could bring order to a fragmented and fast-growing digital asset landscape.
Yet questions remain over Trump’s involvement, the safeguards in place, and the global precedent such legislation might set. With international regulators watching closely—especially in the EU and Asia—how the U.S. manages the intersection of politics and crypto finance may have ripple effects far beyond its borders.
