Senator Elizabeth Warren Criticizes Stablecoin-Focused Bill, Accuses Trump of Financial Interests
On Wednesday, U.S. Senator Elizabeth Warren (D-MA) raised concerns about a stablecoin-focused bill in Congress, alleging that President Donald Trump is using the legislation to benefit himself financially.
Warren’s Allegations Against President Trump
Senator Warren shared her critique on social media, pointing to President Trump’s decentralized finance project, World Liberty Financial, and its launch of the stablecoin USD1 on Ethereum and Binance’s BNB Chain. She accused Trump of using the project as a “grift” to enrich himself.
Call for Congressional Action
Warren called on Congress to amend the “Financial Innovation and Technology for the 21st Century Act” (FIT21) bill, which she believes will make it easier for Trump and other wealthy individuals to control people’s money.
Proposed Regulatory Framework
The FIT21 bill aims to establish clear regulations for digital assets, with U.S. Rep. French Hill (R-AR) planning to introduce a revised version of the bill in the coming days.
Trump’s Crypto Initiatives
Meanwhile, the Trump administration is working towards making the U.S. the “crypto capital of the world,” including the formation of an SEC Task Force dedicated to overseeing digital asset regulations. President Trump has also advocated for simple rules for stablecoins and market structure.
Stablecoin Market Landscape
The stablecoin market currently boasts over $238 billion in circulation, with Tether (USDT) holding a significant share. David Sacks, Trump’s crypto czar, has committed to introducing legislation on stablecoins and market structures within the first 100 days of Trump’s second term.
Warren’s Concerns Over Musk’s Influence
Senator Warren has raised concerns about Elon Musk’s influence in government, particularly through his role in the Department of Government Efficiency (DOGE). She has criticized the department for potentially giving Musk undue influence over financial policy.
Warren’s Recommendations
Warren has urged Musk to address potential conflicts of interest and has suggested reforms to address corruption and wasteful spending in government contracts.
Edited by Sebastian Sinclair