Trump-backed USD1 becomes fifth-largest stablecoin
GENIUS Act vote to shape stablecoin regulation amid USD1’s rapid rise.
Cryptocurrency is at the center of political and financial debate as the U.S. Senate prepares to vote on the GENIUS Act, a pivotal bill aimed at regulating stablecoins.
The vote comes as former President Donald Trump’s stablecoin, USD1, rapidly ascends to the fifth-largest stablecoin globally, now holding a $2.12 billion market cap, reports CoinGape.
However, the surge in USD1’s valuation has raised concerns over potential conflicts of interest, as Trump’s World Liberty Financial launched the stablecoin just two months ago with substantial backing from Abu Dhabi’s MGX.
GENIUS Act Faces Pushback as USD1 Draws Scrutiny
Initially a bipartisan effort, the GENIUS Act is now facing resistance from Senate Democrats, who warn that USD1’s meteoric rise could set a dangerous precedent for political profiteering. Senator Elizabeth Warren criticized the timing of the bill, citing Trump’s links to the $2 billion USD1 investment deal with Binance as a potential conflict.
Despite the controversy, the GENIUS Act remains poised to establish critical reserve and licensing rules for stablecoins, potentially shaping the regulatory landscape for USD1 and other digital assets.
Regulatory Uncertainty Looms Over USD1’s Future
The outcome of today’s vote could significantly impact USD1’s trajectory. If the bill passes with strict regulatory measures, USD1’s expansion may face new compliance challenges.
However, if USD1 continues its ascent on BNB Chain, it could solidify its market position while drawing further scrutiny from lawmakers. With political tensions high and market volatility rising, the next 24 hours could prove decisive for Trump’s stablecoin and the broader crypto regulatory framework in the U.S.
Recently we wrote that USD1, the US dollar stablecoin launched by World Liberty Financial (WLFI) and backed by President Donald Trump, has quickly ascended to the seventh-largest stablecoin globally just two months after its debut.
