Efforts to pass the GENIUS Act in the U.S. Senate face strong opposition. Lawmakers are alarmed by a $2 billion crypto deal tied to President Trump and his allies. The deal involves Emirati firm MGX, Binance, and World Liberty Financial (WLF), a crypto company backed by the Trump and Witkoff families.
MGX aims to invest in Binance using the stablecoin of WLF, USD 1. The effort might earn the Trump and Witkoff families considerable profits. Legislators argue the deal paves the way for foreign influence and bribery. They’ve requested the U.S. Office of Government Ethics to immediately conduct an investigation.
Trump-UAE crypto deal sparks ethics alarm
The president might profit from this agreement in shaping American policy. Sheikh Tahnoun Bin Zayed Al Nahyan owns MGX and serves as the UAE’s national security advisor. He also heads a technology company that has been identified as having ties to Chinese surveillance firms. Tahnoun is pushing for access to American AI chips. He recently sat down with President Trump, which has raised the specter of quid pro quo.
The GENIUS Act, pending a vote in the Senate shortly, does not prohibit government officials or their families from having or exchanging stablecoins. Critics contend that this makes the system vulnerable to manipulation. They fear the bill, without more stringent protections in place, might legalize so-called backdoor payments to U.S. policymakers.
WLF, founded by the son of Steve Witkoff, would profit from the $2 billion investment by MGX. It would earn big profits and share a portion of the profits with both families. Binance remains tainted by its previous legal woes. It paid out a $4 billion case in 2023. Its creator is asking Trump for a pardon and boosting the moral dilemma.
Lawmakers Say Crypto Deal May Break Ethics Rules
Sawmakers worry the agreement will violate federal ethics statutes and the Constitution’s Emoluments Clause. Lawmakers claim the agreement illustrates the potential for foreign powers to utilize crypto in order to curry favor within the U.S.
They have posed several important questions to the ethics office. Lawmakers inquire about what there is in terms of rules for presidents profiting off crypto. They also inquire about what there is in the way of protections against foreign actors using digital assets to secure influence.
The Office of Government Ethics has to respond by May 9. With the deadline approaching, the Senate remains in disarray. Until answers materialize, the GENIUS Act risks getting held up. The controversy now threatens to redefine the future of U.S. crypto regulation.
