Senator Elizabeth Warren (D-MA) took aim at U.S. President Donald Trump’s deepening involvement in cryptocurrency, warning that the GENIUS Act could pave the way for “financial catastrophe” fueled by political profiteering and unregulated crypto expansion.
Warren Warns of Looming Economic Instability
In a heated speech on the Senate floor Monday, Warren condemned the GENIUS Act just hours before it advanced through a 66-32 procedural vote. She accused Congress of supporting what she described as a dangerous move toward crypto deregulation, one that would directly benefit Trump’s private financial interests.
“The GENIUS Act will amplify Trump’s personal corruption by enlarging the stablecoin market and increasing the profitability of USD1,” Warren said, referencing the Trump-backed stablecoin issued by World Liberty Financial. “This bill effectively makes the President of the United States the regulator of his own cryptocurrency.”
Warren warned that the legislation could open the floodgates to another economic crisis, citing threats to national security, market stability, and consumer protections.
“We are on a collision course with another financial crisis,” she said. “And crypto price volatility—amplified by deregulation and self-dealing—is a key driver of that risk.”
Trump’s Crypto Footprint Fuels Partisan Tensions
The GENIUS Act, which initially failed to advance due to Democratic opposition, gained traction again on May 19 following renewed bipartisan support. But Trump’s involvement in crypto markets remains a major flashpoint.
Controversy escalated earlier this month after reports emerged that USD1 would serve as a settlement token in a high-stakes deal between MGX, an Abu Dhabi investment firm, and Binance. The development prompted concerns among lawmakers about foreign influence and lack of transparency.
Adding to the backlash, Trump is set to host an exclusive May 22 fundraising dinner for 220 top holders of his meme coin, $TRUMP. The move was seen by many Democrats as further evidence of inappropriate financial entanglements.
Representative Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, dramatically walked out of a hearing on May 5, citing Trump’s growing control over both crypto assets and federal regulatory bodies.
GENIUS Act Moves Toward Full Senate Vote
Despite mounting resistance, the GENIUS Act will now move forward for a full Senate vote following Memorial Day. If passed, it would establish a federal framework for stablecoins, something proponents argue is needed to foster innovation and protect consumers.
But Warren remains unconvinced. “If we allow this bill to pass without strict safeguards,” she warned, “we’re not just risking dollars—we’re risking lives, livelihoods, and the integrity of our financial system.”
