Critique on Stablecoin Bill

On Wednesday, U.S. Senator Elizabeth Warren (D-MA) criticized a stablecoin-focused bill making its way through Congress, accusing President Donald Trump of using the legislation to further his own financial interests.

The Massachusetts senator shared her critiques while linking to a post about President Trump’s decentralized finance project, World Liberty Financial, which is launching its own stablecoin USD1 on Ethereum and Binance’s BNB Chain.

Warren expressed her concerns on social media, stating that President Trump is leveraging the project as a “grift” to “enrich” himself. She stated, “Congress should step up and fix the current stablecoin bill moving through the Senate that will make it easier for Trump—and Elon Musk—to take control of your money,” criticizing the Financial Innovation and Technology for the 21st Century Act (FIT21).

The FIT21 bill aims to create a clear regulatory framework for digital assets. U.S. Rep. French Hill (R-AR) noted that a revised version of the bill will be introduced in the “next few days.”

Meanwhile, the Trump administration aims to establish the U.S. as the crypto capital of the world through various initiatives, including creating a SEC Task Force for digital asset regulations. Trump also called for “simple, common-sense rules for stablecoins and market structure” during a video call at the Blockworks crypto conference last Thursday.

Currently, the stablecoin market features over $238 billion, according to CoinGecko, with Tether (USDT) comprising a large part of this amount. Trump’s crypto czar, David Sacks, has promised to introduce legislation on stablecoins and market structures in the first 100 days of Trump’s second term.

Warren recently challenged Sacks to prove he’s not “directly profiting off of the Trump Administration’s efforts to selectively pump the value of certain crypto assets,” given that he claimed to have sold all his crypto assets before assuming his role as crypto czar.

Elon Musk’s influence in the government, particularly through his role in the Department of Government Efficiency (DOGE), has further fueled Warren’s concerns. This initiative, led by Musk, aims to reduce government bureaucracy and cut excessive regulations but faces criticism for potentially giving Musk significant control over U.S. financial policy.

In January, Warren criticized DOGE in a letter to Musk, calling it a potential “venue for corruption.” Her letter suggested various changes, including curbing tax loopholes for the wealthy and reforming government contracts to reduce wasteful spending.

Edited by Sebastian Sinclair