Senator Elizabeth Warren has called for an immediate hold on the GENIUS Act. This is a proposed bill that would create the first stablecoin regulation in the United States. Warren’s opposition centers around a growing controversy involving the Trump family stablecoin. It is operated by World Liberty Financial and is connected to a multi-billion-dollar deal with the UAE-based investment firm.

This weekend, Warren raised an alarm about a $2 billion transaction that involves a Trump-backed stablecoin and MGX. MGX is an Emirate investment group backed by Abu Dhabi’s sovereign wealth fund, Mubadala, and AI firm G42. MGX has announced it will use the stablecoin to facilitate its planned investment in Binance. This raises concerns over foreign financial influence and potential conflict of interest.

Trump Stablecoin Surges Amid International Deal

The stablecoin is a crypto that is pegged to the U.S. dollar. It has surged in the market cap and now ranks as the 7th largest stablecoin in the world, according to Senator Elizabeth Warren. She has pointed out that this crypto deal is a “shady crypto deal” between a foreign government, referring to the UAE. She questioned the implications for both U.S. national security and financial integrity.

The Trump family stablecoin surged 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

In a strong-worded statement on social media, Warren wrote, “The Trump family stablecoin surged to the 7th largest in the world because of a shady crypto deal with the United Arab Emirates.” She further criticized the lack of transparency in the $2 billion UAE crypto deal. This involves World Liberty Financial and MGX warning that such foreign entanglement could pose national security risks. Warren called on lawmakers to check the financial motive behind the deal and delay the GENIUS ACT until potential conflicts of interest are fully investigated.

GENIUS Act Stalls as Bipartisan Tensions Rise

The controversy comes amid intense Senator Elizabeth Warren’s GENIUS ACT has taken a leading stance. It is a landmark bill designed for stablecoin regulation. While initially enjoying bipartisan momentum, the bill has faced mounting resistance following a GOP-introduced revision. 9 prominent Senate Democrats have now expressed opposition, citing insufficient safeguards against money laundering. Senator Warren’s renewed criticism is expected to deepen the partisan divide. This has cast serious doubt on the bill’s chances of passing before the scheduled floor vote later this month.

Republicans Push Forward Despite Democratic Backlash

Despite Democratic pushback, Republican lawmakers remain hopeful that ongoing revision will make a strong, stablecoin regulation and satisfy the opposition demand, and secure enough votes for passage. GOP aides have signaled openness to compromise but acknowledge the timeline is tight. As the Senate grapples with the high-stakes negotiations, the intersection of digital asset policy and political controversy. Might continue to complicate an already delicate legislative process with mounting scrutiny on the UAE crypto deal and Trump’s financial interest. Now, GENIUS ACT faces an uncertain path forward.