In a significant development within the ongoing debate over cryptocurrency regulation, leading Senate Democrats are preparing to introduce amendments to the GENIUS Act—legislation aimed at overseeing payment stablecoins—to directly address potential conflicts involving former President Donald Trump and his family’s involvement in the crypto sector.
The GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins, recently saw bipartisan momentum when a majority of senators voted to advance the bill on May 20. However, this progress has been met with pushback from prominent Democrats who want to ensure safeguards are in place to prevent any sitting or former US president from financially benefiting from stablecoin ventures.
According to a report from Axios on May 22, Senate Minority Leader Chuck Schumer is lending his support to a planned amendment championed by Senators Elizabeth Warren and Jeff Merkley. This amendment aims to explicitly block a president from profiting off stablecoins, a measure many view as a necessary response to ongoing concerns about Trump’s crypto connections. The amendment comes after the GENIUS Act initially failed a procedural vote earlier in May, highlighting the contentious nature of the legislation.
Senator Merkley voiced his opposition to the bill’s current form on social media, warning that without this “anti-corruption amendment,” Congress risks endorsing a system that allows former presidents to “sell access and influence to the highest bidder.” His remarks underscore the urgency among Democrats to close what they perceive as loopholes that could be exploited for personal gain.
At the center of the controversy is World Liberty Financial (WLFI), a cryptocurrency platform with ties to Donald Trump’s three sons. The company launched a stablecoin called USD1 in March, designed to function as a dollar-backed digital currency. Critics argue that legislation recognizing stablecoins like USD1 as official financial instruments could enable the Trump family to continue profiting indirectly from the growing crypto market.
The situation escalated when an Abu Dhabi-based investment firm announced plans to use USD1 to settle a massive $2 billion investment in Binance, one of the world’s largest cryptocurrency exchanges. Such a transaction would funnel significant fees to WLFI and, by extension, the Trump family. While Democratic lawmakers have demanded a formal investigation into these connections, WLFI’s co-founder Zach Witkoff dismissed the scrutiny as “flawed,” leaving many questions unanswered.
But stablecoins are just one piece of the broader puzzle. Democrats are also reacting to revelations about a high-profile private dinner hosted by Trump at one of his golf clubs. Reports indicate that around 220 guests attended the event, all of whom had purchased substantial amounts of Trump’s personal memecoin—a digital token linked directly to the former president.
Senator Merkley, alongside Senator Warren, Senator Chris Murphy, and representatives from consumer advocacy groups such as Public Citizen and the progressive political organization Our Revolution, have been vocal in condemning the dinner. They argue that it epitomizes the “corruption” that can arise when wealthy individuals gain direct access to political figures by simply buying digital tokens.
At a May 22 press conference, Senator Warren called for transparency, demanding Trump release the full guest list. While some attendees have voluntarily disclosed their involvement, many remain anonymous, fueling speculation about who else may have secured influence through their investments.
Senator Murphy highlighted the seriousness of the event, stating, “What is happening tonight—this private, secret dinner—where people have paid money into Donald Trump’s pocket to gain access to him, is perhaps the most blatant form of corruption.” He added that those attendees likely sought to leverage the opportunity to push for favorable national security concessions.
Efforts to reach the White House for comment on these developments went unanswered as of this writing.
As crypto continues to intertwine with politics and finance, the amendment to the GENIUS Act represents a pivotal moment in the US government’s approach to regulating digital currencies. Lawmakers seem increasingly determined to ensure that cryptocurrency regulations not only protect consumers but also uphold the integrity of the nation’s political system.
