Overview

• Nine Senate Democrats, including former proponents, now oppose the GOP-led GENIUS Act, citing unresolved issues around foreign oversight and national security risks.
• Senator Elizabeth Warren has criticized the Trump family's involvement in the UAE-backed USD1 stablecoin, calling a $2 billion deal 'shady' and urging safeguards against corruption.
• The GENIUS Act, sponsored by Senator Bill Hagerty, seeks to establish the first federal framework for stablecoin regulation but faces resistance over potential conflicts of interest.
• USD1, co-founded by Eric Trump and Zach Witkoff, is backed by U.S. Treasuries and ranks seventh globally among stablecoins, with its role in the UAE-Binance deal drawing scrutiny.
• President Trump defends the legislation as vital to counter China's digital asset initiatives, while critics warn it could enable private profit from public financial systems.