Crypto deal that would benefit Trump family probed by Senate Dems before GENIUS Act vote

The Senate moved a major cryptocurrency bill closer to becoming law on Wednesday, voting 68-30 to advance legislation that would create America's first rules for digital coins called stable coins, according to Politico’s reporting on the procedural vote. The bill, led by Republican Senator Bill Hagerty from Tennessee, aims to regulate stable coins that are tied to the dollar's value. Eighteen Democrats joined Republicans to support moving forward, even though some party leaders opposed it.

Senator Elizabeth Warren, who leads banking issues for Democrats, strongly criticized the bill on the Senate floor, saying it has too many weak spots and does not protect consumers or national security well enough. The vote occurred after weeks of delays and difficulties in reaching an agreement on the bill. Politico noted that Senate Majority Leader John Thune wants to finish voting on the bill, possibly as early as Monday, without allowing more changes to be added.

Rolling Stone highlights serious concerns about the timing of this bill, noting that it comes as President Trump and his family are building their cryptocurrency business empire. The magazine explains that the GENIUS Act would allow banks and private companies to create their stable coins with minimal government oversight, which critics worry could enable corruption and harm taxpayers. Despite being called stable, these digital coins can be volatile—a 2023 study by the Bank for International Settlements found that all 60 stable coins examined had lost their connection to their backing asset at least once.

The 2022 crypto crash started when a primary stable coin called Terra/Luna collapsed, wiping out 45 billion dollars in just one week. The research paper on ScienceDirect further proved the algorithmic failure of Terra-Luna. Rolling Stone points out that this bill is moving through Congress while Trump's family is actively selling stable coin products, creating a situation where the president's family could directly benefit from laws being made.

CBS News reports that Senate Democrats are seeking answers about President Trump's World Liberty Financial crypto company before the final vote is held. Senators Elizabeth Warren and Jeff Merkley sent a letter on Tuesday, June 10, asking for details about a $2 billion deal between Trump's crypto business and foreign investors, including a company from the United Arab Emirates.

The Trump family owns 60 percent of World Liberty Financial and gets 75 percent of future profits from their digital token sales, CBS News reports. In April, the company launched a stablecoin called USD1, and the UAE company agreed to purchase $2 billion worth of it. The senators worry that this creates an unprecedented conflict of interest, where a sitting president could profit from their own family's cryptocurrency business while signing laws that benefit the same industry. Democrats attempted to include a rule prohibiting presidents and their families from profiting from stable coins, but this amendment was not included in the final bill, which is expected to pass.