As the U.S. Senate prepares for another vote on the GENIUS Act, concerns surrounding former President Donald Trump’s involvement in cryptocurrency are adding new challenges to bipartisan efforts. The bill, officially known as the Guiding and Establishing National Innovation for US Stablecoins Act, seeks to establish a regulatory framework for stablecoins but remains a point of contention among lawmakers, particularly as Trump-linked crypto projects enter the picture.
Paul Grewal, Chief Legal Officer at Coinbase, addressed these complications during the Consensus conference in Toronto on May 15. Grewal acknowledged ongoing disagreements within Congress over key elements of the bill. However, he noted that Trump’s public endorsement of certain memecoins and the Trump family’s involvement in ventures like World Liberty Financial and its USD1 stablecoin have created further friction. “The president’s support for a certain memecoin or two… adds a certain level of challenge” to finding common ground between Democrats and Republicans on stablecoin regulation, Grewal said.
Democrats Push Back Amid Crypto Concerns
Senate Democrats, led by figures such as Senator Elizabeth Warren, have raised red flags over Trump’s crypto associations, specifically citing World Liberty Financial as a potential source of corruption and regulatory concern. These ties have fueled Democratic resistance to the GENIUS Act, despite recent concessions intended to address issues of consumer protection, anti-money laundering measures, and national security safeguards.
Senator Kirsten Gillibrand, a key supporter of the bill, responded to bipartisan pressure by suggesting that any references targeting Trump’s ventures directly could be stripped from the final version. While the potential for compromise exists, the broader political optics of Trump’s influence on crypto continue to polarize the debate.
Still, many lawmakers expect the bill to return to the Senate floor within days. Democrats claim to have secured “major victories” in shaping provisions that strengthen oversight and safety mechanisms, indicating that a more agreeable version of the bill may emerge—albeit with some lingering ideological battles.
Market Structure Legislation Also Under Scrutiny
Beyond the GENIUS Act, Congress is also weighing broader legislation aimed at the digital asset market. A new version of the FIT21 bill, which passed the House in May 2024, is under review, though it faces similar pushback from Democrats wary of Trump’s growing footprint in the crypto world. Concerns about what some lawmakers have labeled “Trump’s crypto corruption” are casting doubt over whether further regulatory measures can pass without partisan gridlock.
Grewal remained cautiously optimistic, stating, “I think we’re gonna learn a lot from the progress we see just in the next few days on stablecoins.” He suggested that this progress could determine how quickly—or slowly—Congress can act on the broader crypto regulatory agenda in alignment with priorities from the White House and congressional leadership.
As crypto continues to grow in financial and political relevance, Trump’s involvement may prove a decisive factor in shaping how—and when—key legislation like the GENIUS Act moves forward.
