US Senate halts vote on stablecoin bill after criticism from Elizabeth Warren

• Senate blocks US stablecoin bill
• Elizabeth Warren criticizes Binance and WLFI deal
• Stablecoins like USDT and USDC continue to rise globally

The GENIUS Act, a bill that aims to regulate stablecoins in the United States, has faced strong resistance in the Senate and is now on hold. The measure, which initially had bipartisan support, lost momentum after strong criticism from Democratic senators, including Elizabeth Warren and Reuben Gallego.

During a speech on May 5, Warren said that passing the bill would “facilitate corruption,” making a direct reference to the $2 billion deal between Donald Trump-linked World Liberty Financials (WLFI) and Binance. “The Trump family’s stablecoin has risen to No. 7 in the world due to a shady deal with the United Arab Emirates. The Senate should not pass a cryptocurrency bill this week that would facilitate this type of corruption,” the senator said.

The Trump family stablecoin emerged to 7th largest in the world because of a shady crypto deal with the United Arab Emirates—a foreign government that will give them a crazy amount of money.

The Senate shouldn't pass a crypto bill this week to facilitate this kind of corruption. pic.twitter.com/4is9KgpXQb

- Elizabeth Warren (@SenWarren) May 4, 2025

Recent reports have revealed that the UAE has taken a minority stake in Binance and used WLFI’s USD1 stablecoin as a means of payment. The incident has raised alarm bells among lawmakers concerned about money laundering and financial security.

Despite initial bipartisan support, the proposal has since lost the support of nine Democratic senators. In a letter, the group said that “the bill, as it currently stands, still has numerous issues that need to be addressed, including adding stronger provisions on anti-money laundering, foreign issuers, national security, and preserving the safety of our financial system.”

Republican Senator Bill Hagerty, the lead sponsor of the initiative, insisted on the importance of regulation. “We need to advance legislation that will establish American leadership in the digital asset sector and protect the US dollar for centuries to come. That time is now,” he said.

The Democratic opposition has been criticized by representatives of the cryptocurrency industry, who point to possible influence from the traditional banking sector. Justin Slaughter, from Paradigm, classified the party's position as a "realignment with big banks". Meanwhile, Stuart Alderoty, Ripple's legal chief, described Warren's stance as a "cheap political shot".

The bill is seen as crucial to establishing clear rules in the stablecoin sector, dominated by issuers such as Tether (USDT) and Circle (USDC), and could expand consumer protections and the US's role in financial innovation.