Democratic lawmakers, led by Senator Elizabeth Warren, are pressing the Office of the Comptroller of the Currency (OCC), the primary regulator for stablecoin issuers under the new law known as the GENIUS Act, to address potential conflicts of interest related to former President Donald Trump's family's stablecoin business.
Warren has raised concerns about how the OCC will address conflicts related to Trump family links with stablecoin business operations. Democrats worry that the new law, signed by Trump in July 2025, accelerates stablecoin adoption while failing to sufficiently prevent corruption risks linked to Trump’s crypto interests or provide strong consumer protections and financial stability measures.
The GENIUS Act creates a federal regulatory framework for U.S. dollar-backed stablecoins, intended to legitimize and integrate them into the financial system. However, many Democrats see this legislation as problematic because it exempts stablecoins from some existing regulations and consumer safeguards, and does not address Trump’s potential personal financial benefits from the expansion of stablecoins.
The Act also gives the OCC expanded authority over stablecoin issuers but critics, including Warren, warn this regime could become a "super highway" for corruption and insufficient oversight. Some Democrats fear major tech companies could exploit the law to issue their own private stablecoins under weak regulation.
In late July and early August 2025, Warren dispatched formal inquiries to the OCC chief Jonathan Gould demanding clarity on how the regulator plans to oversee stablecoins issued by entities connected to Trump’s family and mitigate conflicts of interest within the stablecoin ecosystem.
This pressure from Democrats reflects ongoing tensions in Congress regarding crypto legislation closely connected to Trump’s personal business activities in the cryptocurrency space.
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