A group of prominent Democratic senators is poised to introduce an amendment to the GUIDING AND ESTABLISHING NATIONAL INNOVATION FOR US STABLECOINS ACT (GENIUS). This amendment seeks to curb the potential misuse of stablecoins for bribery and the corrupting influence on government officials, particularly targeting former President Donald Trump.
The decision to propose this amendment follows a recent vote on May 19, which saw 18 Senate Democrats provide bipartisan support to propel the GENIUS Act through a critical procedural stage. This advancement moves the legislation closer to a full debate and potential enactment. The Democratic senators are adamant about embedding safeguards to mitigate the risk of stablecoins being exploited for illicit activities, a sentiment echoed by Senate Democratic Leader Chuck Schumer, alongside Senators Jeff Merkley and Elizabeth Warren.
In a statement on X (formerly Twitter), Senator Merkley emphasised, “Passing the GENIUS Act without our anti-corruption amendment stamps a Congressional seal of approval on Trump selling access and influence to the highest bidder.”
Concerns over the integrity of stablecoin transactions have intensified following the recent launch of the USD1 stablecoin by World Liberty Financial (WLFI), which is backed by the Trump family. Notably, shortly after its debut, this stablecoin facilitated a staggering US$2 billion (AUD$3.1 billion) investment into cryptocurrency exchange Binance by an Abu Dhabi investment firm—an act that has drawn scrutiny and prompted calls for investigation from multiple Democratic senators. Lawmakers express fears that legalising stablecoins could enable Trump and others in power to enrich themselves through potentially corrupt means, thus heightening the likelihood of foreign interference in US policymaking.
Adding weight to the discussion, David Sacks, described as Trump’s “crypto czar”, recently expressed optimism about the GENIUS Act’s prospects. Appearing on CNBC’s ‘Closing Bell Overtime’, he asserted that the bill would likely pass into law, bolstered by “significant bipartisan support.” He referenced the current presence of over $200 billion in stablecoins as unregulated assets, underscoring the necessity and potential economic impact of integrating stablecoins into regulated frameworks. Sacks stated, “If we provide the legal clarity and legal framework for this, I think we could create trillions of dollars of demand for our Treasuries practically overnight.”
However, Sacks did not address the Democratic concerns regarding the potential for bribery and corruption issues that might arise without proper regulatory measures in place.
In a related move, Representative Maxine Waters introduced the ‘Stop Trump In Crypto Act of 2025’, which seeks to prevent senior government officials, including the President and Vice-President, from engaging in cryptocurrency activities while in office. The legislation aims to prohibit Trump from issuing or profiting from any digital assets while serving as President, specifically preventing any forms of insider trading related to crypto.
This proposal emerges as Trump prepares to host a dinner with key holders of his personal memecoin, $TRUMP. Representative Waters voiced her apprehensions, stating, “For all we know, Russia, China, or even North Korea could be buying Trump’s crypto to secure favors from the White House.” The legal framework surrounding these activities remains under scrutiny, especially considering Justin Sun, a prominent figure in the cryptocurrency world and advocate tied to the Chinese Communist Party, is the largest holder of Trump’s memecoin.
In summary, as discussions around the GENIUS Act and related legislation unfold, the interaction between cryptocurrency and governance continues to garner intense scrutiny from lawmakers, particularly surrounding possible ramifications of unregulated stablecoins and the implications for political integrity.
