A $2B UAE investment deal involving the Trump family’s stablecoin has ignited calls for caution on digital asset regulation from Capitol Hill.
Senator Elizabeth Warren has urged the Senate to pause the passage of a major digital asset bill, citing a potential conflict of interest involving the Trump family and its dollar-backed stablecoin initiative.
In a statement shared over the weekend, Warren called on fellow lawmakers to slow down the legislative process, warning that the Trump family’s financial ties to a foreign government raise red flags about influence and integrity.
“The Trump family stablecoin surged to the 7th largest globally due to a shady crypto deal with the United Arab Emirates—a foreign government funneling them absurd amounts of money,” Warren wrote on Sunday via X (formerly Twitter).
Trump Stablecoin at the Center of a $2B Deal With UAE-Backed MGX
At the core of the controversy is the Trump-backed World Liberty Financial, which issues a stablecoin pegged to the U.S. dollar.
This stablecoin recently gained traction after being linked to a $2 billion investment from Emirati firm MGX, reportedly backed by Mubadala—Abu Dhabi’s sovereign wealth fund—and AI powerhouse G42.
The deal outlines that MGX will use the Trump-branded stablecoin to facilitate investments into Binance, the world’s largest crypto exchange. The scale and foreign ties of the arrangement have raised serious ethical and national security concerns, according to critics like Warren.
GENIUS Act in Limbo as Democrats Push Back Against GOP Amendments
The controversy adds new pressure to the ongoing negotiations around the GENIUS Act—a long-awaited bipartisan bill aimed at regulating the stablecoin sector.
While the act was initially expected to gain swift approval, Senate Democrats have begun resisting last-minute GOP revisions, delaying the bill’s forward momentum.
According to Politico, at least nine key Democrats expressed concerns over the current version of the bill, suggesting it fails to sufficiently address money laundering risks, stablecoin solvency issues, and its impact on the broader financial system.
Crypto Bill Faces Growing Gridlock as Bipartisan Talks Stall
As tensions rise, the GENIUS Act now faces a tough path forward. Several Democratic senators who previously supported the bill have withdrawn or hesitated, given the unresolved oversight provisions and the Trump family’s potential financial entanglements.
Republicans, however, remain optimistic. GOP aides believe additional concessions could revive negotiations and still allow a Senate floor vote by month’s end.
Yet with mounting scrutiny over foreign financial influence and concerns of undue enrichment tied to Trump’s stablecoin, the crypto bill’s fate remains uncertain. A bipartisan consensus appears further away than ever, despite growing urgency to regulate the rapidly expanding stablecoin market.
