While a significant portion of US Senate members voted to push forward a bill regulating payment stablecoins on May 20, prominent Democrats are preparing to suggest an amendment to the law addressing former President Donald Trump’s ties to the cryptocurrency sector.
As reported by Axios on May 22, Senate Minority Leader Chuck Schumer along with Senators Elizabeth Warren and Jeff Merkley plan to submit an amendment to the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act, aimed at preventing a US president from benefiting financially from stablecoins. This proposed amendment follows the support of 18 Democrats who voted alongside Republicans in the Senate to move the bill forward on May 20, after it did not pass a procedural vote on May 8.
“Enacting the GENIUS Act without our anti-corruption amendment essentially endorses Trump’s selling of access and influence to the highest bidder,” Merkley stated in a May 22 post on X.
Trump and his three sons are connected to the cryptocurrency platform World Liberty Financial (WLFI), which introduced its USD1 stablecoin in March. Detractors have highlighted that the former president could continue to personally gain from regulations that elevate stablecoins like USD1 as financial instruments within the US.
Related: US legislator introduces anti-corruption bill ahead of Trump’s dinner
An investment firm based in Abu Dhabi announced that it would employ USD1 to finalize a $2-billion investment in Binance, essentially permitting the president’s family to reap the benefits from transaction fees. Democratic lawmakers have already demanded an inquiry into Trump’s involvement with the platform, which was broadly dismissed as “faulty” by WLFI co-founder Zach Witkoff.
Democrats assert stablecoins represent only one of many potential conflicts
Merkley and Warren are also organizing counteractions regarding Trump hosting a dinner at his golf club for as many as 220 individuals who acquired the largest quantities of his personal memecoin. Merkley is anticipated to participate in a protest arranged by the consumer advocacy organization Public Citizen, in conjunction with progressive group Our Revolution, outside the Trump venue on May 22.
Warren conducted a press conference alongside Merkley, Senator Chris Murphy, and representatives from Public Citizen, urging Trump to “disclose the guest list” for the dinner event. While several potential attendees have come forward to state they owned the wallets that purchased the memecoin and planned to attend, most remained unidentified by the time of publication.
“What is taking place tonight — this exclusive, covert dinner — where individuals who have financially contributed to Donald Trump gain access to him, is perhaps the most egregious of all corrupt practices,” remarked Murphy, adding:
“They were able to pay their way in to secure an audience with the President of the United States to request favorable national security concessions.”
Cointelegraph contacted the White House for comments, but had not received any response by the time of publication.
Magazine: Trump’s cryptocurrency endeavors raise questions of conflict of interest and insider trading
