Democrats push for revision of the Genius bill due to Trump’s crypto relationship

The U.S. government is about to enact its first crypto regulations, which is to guide and build national innovation for the U.S. Stability Act (Genius) Act. But Democratic lawmakers are working to include corruption protections for public officials, especially President Donald Trump’s family.

According to a report by Axios, a group of senators insisted that the bill must be revised to prevent Trump and his inner circle from profiting from Stablecoins and selling influence to those with the highest bidders.

Senators push for revision of the genius law

The Genius Act will be introduced by U.S. Senator Bill Hagerty in February as the first regulatory framework for the bill is co-sponsored by Senators Kirsten Gillibrand and Cynthia Lummis.

If enacted, the bill would establish a federal licensing and oversight framework for Stablecoins, requiring its issuers to conduct regular security audits. The legislation would limit stable issuance to licensing entities and prohibit transactional assets that are not fully supported.

Democrats raised concerns about potential clashes with Trump’s crypto investment ahead of the bill passed in the Senate earlier this week. Although they had withdrawn their support before, most of them eventually voted in favor, except for Senate Minority Leader Chuck Schumer.

Worry about Trump’s cryptocurrency

With the Genius Act, Democrats are just steps away from becoming law, and the Democrats once again insist that amendments include protecting corruption. Senators Jeff Merkley, Elizabeth Warren and Schumer are pushing for amendments to the amendment before legislation passes the Senate.

Senators Gary Peters, Jack Reed, Chris Murphy and Michael Bennet jointly sponsored the amendment. While most of these lawmakers voted in favor of the bill, sources familiar with the matter indicated that they could withdraw their support if legislation lacks protection for corruption.

With the amendment pushed, Democratic Senator Mark Warner insists that the bill should be passed regardless of concerns about Trump’s family. The possibility of corruption should not blind the U.S. government to a broader reality that blockchain technology will remain here, he said.

These concerns are due to the Trump family’s crypto business, World Free Finance (WLFI), which launched the new Stablecoin, USD1. The asset has reached an agreement to become a settlement currency for Abu Dhabi-based MGX’s $2 billion investment in cryptocurrency exchanges.

Meanwhile, senior Democratic lawmakers have begun investigating Trump’s cryptocurrency adventures, discussing concerns about illegal fundraising, abuse of political power and foreign influence.