Trump-Backed USD1 Becomes 5th Largest Stablecoin Ahead of GENIUS Act Vote
By: bitcoin ethereum news|2025/05/09 03:15:02
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Cryptocurrency has dominated headlines in recent months, and today, all eyes are on the U.S. Senate as the historic GENIUS Act heads to a floor vote. As the crypto community watches closely, the outcome of today’s vote could have massive implications for the future of digital asset regulation in the US. Despite being a bipartisan bill initially, Democrats are increasingly expressing concerns over potential conflicts of interest, particularly involving former President Donald Trump’s ties to the stablecoin USD1. The Trump -backed stablecoin is now the 5th-largest stablecoin in the world. According to CoinMarketCap data, USD1 now claims a $2.12 billion market cap, which places it ahead of PayPal’s PYUSD and Tether Gold. The ranking has a caveat: if DAI, USDS, and sUSDS are treated as separate tokens, then USD1 claims the seventh spot globally. These tokens are technically distinct even though they share the same collateral mechanism. A $2B Deal and the Trump Connection Trump family-owned World Liberty Financial’s stablecoin USD1 was launched in March 2025. It rapidly grew in value thanks to a $2 billion investment from Abu Dhabi’s MGX. The funds were used to facilitate a deal with Binance, triggering waves of speculation and political fallout. The fact that nearly all of USD1’s issuance is on BNB Chain has only added to the buzz surrounding its explosive growth. It took just weeks for USD1 to jump from $128 million to over $2.1billion in market cap, making it the 5th largest stablecoin at the time of writing. GENIUS Act Vote Under Fire The sudden rise of Trump’s stablecoin couldn’t come at a more controversial time. The U.S. Senate is preparing for a crucial vote on the GENIUS Act—a landmark bill designed to regulate stablecoins. Initially welcomed across party lines, the bill now faces fresh Democratic resistance. Critics argue that USD1’s ties to a Trump-backed project and UAE-linked capital could open floodgates to political profiteering. In fact, referencing the USD1 deal Senator Elizabeth Warren warned: “The Senate shouldn’t pass a crypto bill this week to facilitate this kind of corruption,” The GENIUS Act proposes reserve rules, licensing, and compliance mandates. But with Trump’s stablecoin in the spotlight, some lawmakers say it also opens the door for political profiteering. What’s Next for Trump’s Stablecoin? The Senate vote is heading to the floor today , and all eyes are on Capitol Hill. The result of the vote could create a regulatory path for stablecoins in the US. Additionally, it will also determine if Trump’s stablecoin ends up cementing its position or getting sidelined by legislation. If USD1 continues gaining momentum on BNB Chain, it could become a fixture in both markets and politics. That is, if it avoids any legal hurdles! ✓ Share: Coingape Staff CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article. Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss. Source: https://coingape.com/trump-backed-usd1-becomes-5th-largest-stablecoin-ahead-of-genius-act-vote/
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