U.S. Senator Elizabeth Warren (D-MA) issued a stark warning on the Senate floor Monday, calling the GENIUS Act a direct threat to national financial stability and a vehicle for “crypto corruption” tied to President Donald Trump’s expanding digital asset empire.

The bill, which recently advanced through a procedural Senate vote (66–32), would establish formal guardrails for stablecoins in the U.S. But Warren claims its language opens the door for personal enrichment by the president himself and accelerates systemic risk across financial markets.

Warren: “This Bill Hands Trump the Power to Regulate His Own Coin”

At the core of Warren’s argument is the emergence of USD1, a stablecoin launched earlier this year by World Liberty Financial, a Trump-linked venture. According to Warren, the GENIUS Act provides a regulatory greenlight that could dramatically scale USD1’s market footprint while placing oversight directly under the influence of the White House.

“For the first time in U.S. history, the president of the United States could oversee a financial product he stands to profit from,” Warren stated. “This isn’t innovation—it’s corruption dressed up as tech.”

She accused the bill of fueling “a future financial meltdown” by giving legitimacy to what she described as speculative, politically-driven digital currencies.

Political Fallout Mounts Over Trump’s Crypto Dealings

Trump’s ties to USD1 have already raised concerns among Democratic lawmakers. Earlier this month, reports surfaced that the stablecoin could be used to close a high-value deal between UAE-based investment firm MGX and crypto giant Binance, further blurring the lines between personal wealth, international finance, and executive power.

Those concerns intensified with the announcement of an exclusive $TRUMP meme coin gala dinner scheduled for May 22, where Trump is expected to meet top token holders.

House Financial Services Committee Ranking Member Maxine Waters (D-CA) condemned the event and walked out of a hearing on May 5, citing the conflict of interest as “an unacceptable abuse of office.”

Regulatory Stakes Go Beyond the White House

Warren’s critique also highlighted the broader risks of politicized crypto legislation. She warned that advancing laws like the GENIUS Act without clear safeguards around political entanglement, algorithmic risks, and stablecoin redemption frameworks could leave consumers—and the economy—exposed.

“We’re building a ticking time bomb,” she said. “And we’re doing it while handing the detonator to the president.”

Analysts say the bill’s passage could embolden other political leaders or corporate executives to develop tokens under the pretense of financial inclusion, while actually centralizing power and weakening oversight.

Senate Advances Bill—Final Vote Looms Post-Memorial Day

Despite the fierce opposition, the GENIUS Act continues to gain momentum, with the full Senate vote expected shortly after Memorial Day. Supporters argue the bill will bring long-needed regulatory clarity to the fast-growing stablecoin sector, especially as the U.S. risks falling behind crypto-friendly jurisdictions in Asia and Europe.

Critics, however, say the bill’s potential entanglement with Trump’s personal financial interests demands greater scrutiny.

With the 2024 election cycle intensifying and the crypto industry’s political influence growing, the GENIUS Act could become one of the most hotly contested pieces of legislation shaping the next era of digital finance.