Senate Democrats Target Trump’s Stablecoin Payday with Anti-Corruption Amendment

Can a family’s involvement in cryptocurrency influence national policy? Senate Democrats are pushing to amend the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act to prevent corruption linked to President Trump’s family and their cryptocurrency platform, World Liberty Financial (WLFI).

• Senate Democrats propose anti-corruption amendment to GENIUS Act
• Amendment targets Trump family’s profits from WLFI’s USD1 stablecoin
• Investigation into Trump’s secretive memecoin dinner

The GENIUS Act, a bill aimed at regulating the use and payment of stablecoins in the United States, recently received bipartisan support in the Senate. Stablecoins, like Tether (USDT) and Circle’s USDC, are cryptocurrencies designed to have a stable value, often pegged to traditional currencies such as the U.S. dollar. They play a crucial role in trading and decentralized finance (DeFi), where they serve as a bridge between traditional finance and the world of crypto. Now, with the introduction of WLFI’s USD1 stablecoin, managed by Donald Trump and his sons Eric, Donald Jr., and Barron, the stakes have risen, prompting legislative action.

World Liberty Financial, backed by the Trump family, launched USD1, which is backed by U.S. government treasuries and cash equivalents. An Abu Dhabi investment company’s planned $2 billion transaction in Binance using USD1 would have benefited the Trump family through transaction fees. This financial entanglement has raised eyebrows and spurred Senate Democrats to action.

“Passing the GENIUS Act without including their anti-corruption amendment would show that Congress was okay with Trump selling influence and access to those who can pay the most,” Senator Jeff Merkley stated, emphasizing the urgency of the amendment.

Adding fuel to the fire, Senators Merkley and Elizabeth Warren are investigating Trump’s secretive dinner for memecoin buyers. The exclusive event, attended by crypto mogul Justin Sun and other anonymous figures, has sparked concerns over ethical breaches and potential corruption. Senator Chris Murphy didn’t mince words, calling it “maybe the most corrupt of all the corruption.”

“This was maybe the most corrupt of all the corruption.” – Senator Chris Murphy

Consumer advocacy groups like Public Citizen and political organizations such as Our Revolution have taken to the streets, demanding transparency regarding the dinner’s guest list. The public outcry underscores the broader concerns about influence-peddling in government, especially as cryptocurrencies like stablecoins and meme coins become increasingly intertwined with political power.

The Trump administration’s broader crypto agenda, including the establishment of a Strategic Bitcoin Reserve, highlights the growing integration of digital assets into U.S. financial strategy. Yet, this integration also brings new challenges and potential conflicts of interest, as seen with David Sacks, the administration’s AI and crypto czar, who sold over $200 million in digital assets to avoid such conflicts.

The competitive landscape of stablecoins is heating up, with new entrants like USD1 vying for market share alongside established players like PayPal and Gemini, as well as innovators like Ripple’s RLUSD and the Global Dollar Network. This evolving market underscores the urgency of regulatory clarity and the need to address potential corruption head-on.

As the crypto world continues to disrupt the financial status quo, the principles of decentralization, freedom, and privacy remain at the core of this revolution. While Bitcoin maximalists might argue for the supremacy of BTC, the reality is that altcoins and other blockchains, like Ethereum, serve unique roles in this landscape. They fill niches that Bitcoin might not be suited for, driving innovation and challenging existing power structures. Yet, as we champion this effective accelerationism (e/acc), we must also remain vigilant against the dark sides of crypto, including scams and unfounded price predictions that undermine the integrity of the space.

Some might argue that the Trump family’s involvement in WLFI is just business as usual in a world where political figures often have financial interests in various sectors. However, the sheer scale