- Treasury backs stablecoin bill to boost global dollar dominance.
- Trump’s token causes a democratic revolt.
- Lawmakers demand ethics rules barring officials from profiting off crypto.
The U.S. Treasury Secretary has publicly backed stablecoin legislation to solidify the dollar’s power in the digital age. This week, news seemed to encapsulate the administration’s view on digital assets, claiming that Digital assets are an essential source of innovation that can drive usage of the U.S. dollar worldwide with stablecoin legislation. The endorsement, however, has widened a divide in the Senate, where a pending bill to overhaul key financial regulations teeters on destruction.
Stablecoins Spark Bipartisan Rift
The bill in question, the Guiding Emerging Networks in the United States Act, or GENIUS Act, would create a legal framework for the U.S. to oversee stablecoins. Democratic support for that has eroded sharply in recent weeks after an arrangement was announced in which a Trump-related firm, World Liberty Financial, would link stablecoins to $2 billion in foreign investment.
Backed by Abu Dhabi, that deal would use World Liberty stablecoins to fund activity on Binance and raise ethical red flags with lawmakers. In its current form, the legislation has not passed muster with critics, who say it doesn’t provide sufficient protections against political self-dealing, particularly as Trump’s wealth increasingly depends on crypto ventures.
Senator Elizabeth Warren led the charge against the bill, circulating a fact sheet outlining the “failures to safeguard national security, prevent corruption, and protect consumers.”
Republicans Push Forward Despite Objections
John Thune, the Senate Majority Leader representing the Republican Party from South Dakota, called on Democrats to ‘work through the problems’ but pressed on the need to forge ahead as per reports. The vote on the GENIUS Act is expected to be done through a procedure and is likely to be passed through the consent of at least sixty senators. However, there are also some prognostications based on the opinions of some politicians. Some Republican figures, such as Rand Paul, Josh Hawley, and John Kennedy, have also opposed the bill, making the future of the bill look bleak.
However, Republicans’ general point aligns with what the Treasury has said about stablecoins. A White House press secretary responded, “President Trump is fully committed to making America the hub for cryptocurrencies and changing our fintech completely.”
This aggravates the ethical controversy as it also turns out that Trump now has a nearly 40% stake in various cryptocurrencies, including memes, and a substantial part of World Liberty Financial. That figure has reportedly risen due to the products, including $TRUMP and $MELANIA coins, and strategic agreements of digital assets starting from October 2024.
Despite the White House proving that Trump’s business assets are in a blind trust controlled by his children, Senator Richard Blumenthal continues to make such calls.
On one hand, Treasury officials state that stablecoin policy is crucial for the US to maintain leadership in technology and the dollar’s stability; however, political interference, foreign investment, and personal enrichment jeopardize the bill’s prospects.
