Cryptocurrency has dominated headlines in latest months, and at this time, all eyes are on the U.S. Senate because the historic GENIUS Act heads to a flooring vote. As the crypto group watches carefully, the end result of at this time’s vote might have large implications for the longer term of digital asset regulation within the US.
Despite being a bipartisan invoice initially, Democrats are more and more expressing issues over potential conflicts of curiosity, notably involving former President Donald Trump’s ties to the stablecoin USD1. The Trump-backed stablecoin is now the 5th-largest stablecoin on this planet.
According to CoinMarketCap knowledge, USD1 now claims a $2.12 billion market cap, which locations it forward of PayPal’s PYUSD and Tether Gold. The rating has a caveat: if DAI, USDS, and sUSDS are handled as separate tokens, then USD1 claims the seventh spot globally. These tokens are technically distinct although they share the identical collateral mechanism.
A $2B Deal and the Trump Connection
Trump family-owned World Liberty Financial’s stablecoin USD1 was launched in March 2025. It quickly grew in worth because of a $2 billion funding from Abu Dhabi’s MGX. The funds had been used to facilitate a cope with Binance, triggering waves of hypothesis and political fallout.
The reality that almost all of USD1’s issuance is on BNB Chain has solely added to the excitement surrounding its explosive progress. It took simply weeks for USD1 to leap from $128 million to over $2.1billion in market cap, making it the 5th largest stablecoin on the time of writing.
GENIUS Act Vote Under Fire
The sudden rise of Trump’s stablecoin couldn’t come at a extra controversial time. The U.S. Senate is making ready for an important vote on the GENIUS Act—a landmark invoice designed to manage stablecoins.
Initially welcomed throughout get together traces, the invoice now faces recent Democratic resistance. Critics argue that USD1’s ties to a Trump-backed undertaking and UAE-linked capital might open floodgates to political profiteering.
In reality, referencing the USD1 deal Senator Elizabeth Warren warned:
“The Senate shouldn’t pass a crypto bill this week to facilitate this kind of corruption,”
The GENIUS Act proposes reserve guidelines, licensing, and compliance mandates. But with Trump’s stablecoin within the highlight, some lawmakers say it additionally opens the door for political profiteering.
What’s Next for Trump’s Stablecoin?
The Senate vote is heading to the floor today, and all eyes are on Capitol Hill. The end result of the vote might create a regulatory path for stablecoins within the US. Additionally, it can additionally decide if Trump’s stablecoin finally ends up cementing its place or getting sidelined by laws.
If USD1 continues gaining momentum on BNB Chain, it might grow to be a fixture in each markets and politics. That is, if it avoids any authorized hurdles!
Coingape Staff
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