On Wednesday, U.S. Senator Elizabeth Warren (D-MA) took aim at a stablecoin-focused bill making its way through Congress, accusing U.S. President Donald Trump of using the legislation to further his own financial interests.
The Massachusetts senator shared the critique while linking a post about President Trump’s decentralized finance project, World Liberty Financial, launching its own stablecoin USD1 on Ethereum and Binance’s BNB Chain.
Warren voiced her concerns on social media, claiming President Trump is leveraging the project as a “grift” to “enrich” himself.
“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,” Warren wrote, criticizing the “Financial Innovation and Technology for the 21st Century Act” (FIT21) bill.
The FIT21 bill seeks to create a clear regulatory framework for digital assets, with U.S. Rep. French Hill (R-AR) mentioning that in the “next few days,” legislators will roll out a revised bill.
In the meantime, the Trump administration is moving to make the U.S. the “crypto capital of the world” through a series of initiatives, including the creation of a SEC Task Force dedicated to overseeing digital asset regulations.
President Trump also called for “simple, common-sense rules for stablecoins and market structure” during a video call at the Blockworks crypto conference in New York last Thursday.
The stablecoin market currently holds over $238 billion in circulation, as per CoinGecko data, with Tether (USDT) making up a significant portion.
Trump’s crypto czar, David Sacks, has previously promised to introduce legislation on stablecoins and market structures within the first 100 days of Trump’s second term.
The Massachusetts senator 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,” as he claimed he sold all his crypto assets before beginning in his role as crypto czar.
Elon Musk’s influence within the government, particularly through his role in the Department of Government Efficiency (DOGE), has only fueled Warren’s concerns.
The initiative, which Musk heads, aims to reduce government bureaucracy and eliminate excess regulations, but it has faced criticism for potentially giving Musk—and by extension, his business interests—a disproportionate amount of influence over U.S. financial policy.
In January, Warren lambasted DOGE in a letter to the Dogecoin aficionado, accusing the department of being a potential “venue for corruption.”
The senator’s letter to Musk suggested a range of changes, including cracking down on tax loopholes for the wealthy and reforming government contracts to cut wasteful spending.
Edited by Sebastian Sinclair
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Source: https://decrypt.co/311852/elizabeth-warren-stablecoin-bill-trump-musk-grift
