Senate preliminarily approves GENIUS Act legislation for stablecoins
The GENIUS Act, a landmark legislation establishing the first federal framework regulating payment stablecoins in the United States, was signed into law by President Donald Trump on July 18, 2025. The Act, which passed with a 66-32 vote in the Senate, introduces licensing, regulatory oversight, and enforcement provisions for payment stablecoin issuers and intermediaries, and sets timelines for federal and state regulators to implement regulations within one year.
However, the celebration surrounding the new law is overshadowed by political controversy and regulatory scrutiny. Senator Elizabeth Warren, along with other Democratic senators, has raised significant concerns about potential conflicts of interest linked to President Trump and his family benefiting financially from stablecoins while the GENIUS Act places regulatory authority within federal agencies potentially influenced by Trump’s interests.
Specifically, Trump’s family launched a stablecoin called USD1 via their crypto firm World Liberty Financial (WLFI), which is already one of the largest stablecoins by market cap. Senators Warren, Ron Wyden, and Chris Van Hollen criticized the situation as an unprecedented conflict of interest, emphasizing that the Act does not prevent Trump or his affiliates from financially profiting from stablecoin issuance and use.
These concerns have led to calls for tighter restrictions on crypto involvement by senior officials, such as the COIN Act introduced by Senator Adam Schiff, which proposed banning the president, vice president, and their families from engaging in crypto businesses while in office. The senators also demanded that the Office of the Comptroller of the Currency (OCC), which has broad authority over stablecoin regulation under the GENIUS Act, clarify how it plans to handle the conflict posed by the Trump family’s crypto activities.
The controversy has not deterred the Act from moving forward. A UAE company chaired by the country's national security advisor bought $2 billion of the stablecoin, and the $TRUMP memecoin has attracted foreign investors. However, Senator Gillibrand, who was seen having a strident discussion on the floor with Republican bill sponsor Senator Bill Hagerty, stated that the $TRUMP coin was illegal.
Not all Democrats share the same sentiments. Senator Mark Warner expressed concerns about the Trump family's use of crypto technologies but believes that blockchain technology is here to stay. Democrat Senator Andy Kim supported the bill at the Banking Committee level but did not support cloture last night. The percentage of senators seeing conflicts has dropped to 60%, with 7% of respondents in a reader poll unsure about conflicts of interest.
The GENIUS Act is now law, creating formal regulatory pathways for stablecoins. Yet, the ongoing political controversy and regulatory scrutiny surrounding President Trump’s family financial stakes in the stablecoin market may continue to shape the conversation around this groundbreaking legislation.
[1] CoinDesk. (2025). The GENIUS Act: A New Era for Stablecoins in the US. [online] Available at: https://www.coindesk.com/the-genius-act-a-new-era-for-stablecoins-in-the-us
[2] The Hill. (2025). Senators Call for Tighter Restrictions on Crypto Involvement by Senior Officials. [online] Available at: https://thehill.com/policy/finance/567898-senators-call-for-tighter-restrictions-on-crypto-involvement-by-senior-officials
[3] Bloomberg. (2025). GENIUS Act Becomes Law, Establishing First Federal Framework for Payment Stablecoins. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-18/genius-act-becomes-law-establishing-first-federal-framework-for-payment-stablecoins
[4] Politico. (2025). Senators Demand OCC Clarify Stablecoin Regulation Plans Amid Trump Family Conflict. [online] Available at: https://www.politico.com/news/2025/07/20/senators-demand-occ-clarify-stablecoin-regulation-plans-amid-trump-family-conflict-00021701
- The GENIUS Act, establishing the first federal framework for regulating payment stablecoins, has been signed into law by President Donald Trump, but the legislation faces ongoing political controversy over potential conflicts of interest involving Trump's family and their stablecoin venture, USD1.
- Senator Elizabeth Warren and other Democratic senators have expressed concerns about possible conflicts of interest, as Trump's family launched USD1, one of the largest stablecoins by market cap, while the Act places regulatory authority under federal agencies potentially influenced by Trump’s interests.
- Calls for tighter crypto restrictions on senior officials, such as the COIN Act introduced by Senator Adam Schiff, have followed, with demands that the Office of the Comptroller of the Currency (OCC) clarify its plans for handling conflicts arising from the Trump family’s crypto activities.
- While political controversy surrounds the Trump family's financial stakes in the stablecoin market, some, like Senators Mark Warner and Andy Kim, support the GENIUS Act while raising concerns about the Trump family's use of cryptocurrencies, with 60% of senators seeing conflicts of interest, according to a reader poll.
