US Senators Plan Amendment to Stablecoin Bill, Citing Trump’s Crypto Ties
The United States Senate is currently debating the Guiding and Establishing National Innovation for US Stablecoins Act, also known as the GENIUS Act, aimed at regulating payment stablecoins. However, some high-ranking Democrats are planning to introduce an amendment to this bill due to concerns about former President Donald Trump’s involvement in the cryptocurrency industry. This move follows a Senate vote on May 20 to advance the bill.
Proposed Amendment Details
Senate Minority Leader Chuck Schumer, along with Senators Elizabeth Warren and Jeff Merkley, are expected to propose an amendment that would prevent a US president from personally profiting from stablecoins. This action is in response to concerns that Trump’s connections to the crypto platform World Liberty Financial (WLFI) could create conflicts of interest.
- The amendment aims to ensure that the President of the United States cannot benefit financially from the regulation or promotion of stablecoins.
- It comes after a bipartisan vote in the Senate to move the GENIUS Act forward.
Trump’s Crypto Involvement
Trump and his sons are associated with WLFI, which launched the USD1 stablecoin in March. Critics argue that any legislation favorable to stablecoins could directly benefit Trump financially. Senator Merkley stated that passing the GENIUS Act without the anti-corruption amendment would be like Congress endorsing Trump selling access and influence.
Concerns Over Potential Conflicts of Interest
An investment firm based in Abu Dhabi reportedly planned to use USD1 to settle a $2 billion investment in Binance, potentially allowing the Trump family to profit from transaction fees. This has led to calls for investigations into Trump’s ties to WLFI.
Democrats’ Broader Concerns
Beyond stablecoins, Senators Warren and Merkley are also raising concerns about Trump hosting a dinner for individuals who invested heavily in his memecoin. Merkley attended a protest outside the event, while Warren held a press conference calling for transparency regarding the guest list. Senator Chris Murphy criticized the dinner as potentially facilitating access to the President in exchange for financial contributions, raising national security concerns.
According to an Axios report, these concerns highlight the broader debate around crypto regulation and potential conflicts of interest involving public figures.
Conclusion
The proposed amendment to the GENIUS Act reflects growing scrutiny over the intersection of cryptocurrency and politics, particularly concerning potential conflicts of interest. As the Senate continues to debate the future of stablecoin regulation, these ethical considerations are likely to remain a focal point. This comes just as Bitcoin price predictions are being closely watched by investors.
Source: Axios
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