Cryptocurrency has dominated headlines in current months, and at this time, all eyes are on the U.S. Senate because the historic GENIUS Act heads to a flooring vote. Because the crypto neighborhood watches intently, the result of at this time’s vote may have large implications for the way forward for digital asset regulation within the US.
Regardless of being a bipartisan invoice initially, Democrats are more and more expressing considerations over potential conflicts of curiosity, notably involving former President Donald Trump’s ties to the stablecoin USD1. The Trump-backed stablecoin is now the Fifth-largest stablecoin on the earth.
In accordance with CoinMarketCap knowledge, USD1 now claims a $2.12 billion market cap, which locations it forward of PayPal’s PYUSD and Tether Gold. The rating has a caveat: if DAI, USDS, and sUSDS are handled as separate tokens, then USD1 claims the seventh spot globally. These tokens are technically distinct regardless that they share the identical collateral mechanism.
A $2B Deal and the Trump Connection
Trump family-owned World Liberty Monetary’s stablecoin USD1 was launched in March 2025. It quickly grew in worth because of a $2 billion funding from Abu Dhabi’s MGX. The funds have been used to facilitate a take care of Binance, triggering waves of hypothesis and political fallout.
The truth that almost all of USD1’s issuance is on BNB Chain has solely added to the thrill surrounding its explosive development. It took simply weeks for USD1 to leap from $128 million to over $2.1billion in market cap, making it the 5th largest stablecoin on the time of writing.
GENIUS Act Vote Underneath Hearth
The sudden rise of Trump’s stablecoin couldn’t come at a extra controversial time. The U.S. Senate is making ready for an important vote on the GENIUS Act—a landmark invoice designed to control stablecoins.
Initially welcomed throughout get together traces, the invoice now faces contemporary Democratic resistance. Critics argue that USD1’s ties to a Trump-backed undertaking and UAE-linked capital may open floodgates to political profiteering.
Actually, referencing the USD1 deal Senator Elizabeth Warren warned:
“The Senate shouldn’t cross a crypto invoice this week to facilitate this sort of corruption,”
The GENIUS Act proposes reserve guidelines, licensing, and compliance mandates. However with Trump’s stablecoin within the highlight, some lawmakers say it additionally opens the door for political profiteering.
What’s Subsequent for Trump’s Stablecoin?
The Senate vote is heading to the floor today, and all eyes are on Capitol Hill. The results of the vote may create a regulatory path for stablecoins within the US. Moreover, it can additionally decide if Trump’s stablecoin finally ends up cementing its place or getting sidelined by laws.
If USD1 continues gaining momentum on BNB Chain, it may grow to be a fixture in each markets and politics. That’s, if it avoids any authorized hurdles!
The publish Trump-Backed USD1 Becomes 5th Largest Stablecoin Ahead of GENIUS Act Vote appeared first on CoinGape.