Senate Minority Leader Chuck Schumer, alongside Senators Elizabeth Warren and Jeff Merkley, is planning to introduce an amendment to the GENIUS Act (Guarding the Economy and National Interests Using Stablecoins).
The amendment will allegedly prevent U.S. presidents and high-ranking officials from profiting directly or indirectly from stablecoin ventures.
The move is seen as a direct response to revelations about former President Donald Trump’s alleged financial ties to World Liberty Financial, the issuer of the USD1 stablecoin.
New Amendment Seeks to Bar Presidents from Profiting Off Stablecoins
The amendment aims to impose stricter ethical guidelines by prohibiting executive officeholders from holding equity or benefiting from revenue streams tied to stablecoins or other digital assets.
The senators argue that such entanglements could present significant conflicts of interest, particularly as stablecoins increasingly intersect with national monetary policy and global finance.
Their concern centers on reports that Trump may have undisclosed financial interests in World Liberty Financial, a rapidly growing fintech firm whose USD1 stablecoin has gained traction in international markets.
Critics fear that such ties could allow political figures to influence regulatory frameworks for personal gain or use their office to legitimize certain digital assets.
Warren Warns Against Stablecoins Becoming Tools for Political Self-Enrichment
Senator Warren emphasized that the integrity of financial regulation must be preserved from political or personal agendas, stating that stablecoins must not become tools for self-enrichment among powerful public officials.
If adopted, the amendment could mark a significant step toward ensuring transparency and accountability in the governance of digital finance, particularly as the U.S. grapples with how to regulate stablecoins in a way that protects both economic stability and democratic institutions.
GENIUS Act Aims to Establish Federal Oversight for Stablecoins
The GENIUS Act (Guarding the Economy and National Interests Using Stablecoins) is a proposed U.S. law designed to regulate stablecoins—digital assets pegged to traditional currencies like the U.S. dollar.
The act aims to ensure financial stability by placing stablecoin issuers under strict federal oversight, requiring them to be licensed and to maintain full reserves to back their tokens.
It also addresses national security concerns by preventing the use of stablecoins for money laundering, terrorist financing, or evading sanctions.
By establishing clear regulatory responsibilities for agencies such as the Treasury, SEC, and Federal Reserve, the GENIUS Act seeks to bring transparency and accountability to the rapidly growing stablecoin market.
Additionally, the legislation includes consumer protection measures, ensuring that users can reliably redeem stablecoins for fiat currency.
Overall, the act is part of a broader effort to integrate digital assets into the U.S. financial system while mitigating potential economic and political risks.
Warren, Merkley Push Back Against Trump’s Private Dinner for Ethereum Backers
Senators Elizabeth Warren and Jeff Merkley are getting ready to respond to former President Donald Trump’s invitation to his golf club for a private dinner for high-profile purchasers of his personal Ethereum.
The exclusive gathering, which is allegedly only open to the top 220 token holders, has drawn criticism for obfuscating the distinction between political influence and cryptocurrency speculation.
The progressive advocacy group Our Revolution and the consumer rights group Public Citizen are planning a protest outside the venue on May 22, and Merkley is anticipated to participate.
The demonstration seeks to raise awareness of possible conflicts of interest and the misuse of digital assets for private or political ends as legislators demand more accountability and transparency in the rapidly changing crypto space.
Also Read: US Senate Repeals Crypto Tax Rule For DeFi Transaction Reporting Requirements, Bill Moves to Trump