![\"Trump-Backed](\"https:\/\/coingape.com\/wp-content\/uploads\/2025\/05\/Trump-Backed-USD1-Becomes-5th-Largest-Stablecoin-Ahead-of-GENIUS-Act-Vote.webp\")
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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\u2019s vote could have massive implications for the future of digital asset regulation in the US.<\/p>\n
Despite being a bipartisan bill initially, Democrats are increasingly expressing concerns over potential conflicts of interest, particularly involving former President Donald Trump\u2019s ties to the stablecoin USD1. The Trump<\/span>-backed stablecoin is now the 5th-largest stablecoin in the world.<\/span><\/p>\n According to CoinMarketCap data, USD1 now claims a $2.12 billion market cap, which places it ahead of PayPal\u2019s PYUSD and Tether Gold.\u00a0<\/span>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.\u00a0<\/span><\/p>\n Trump family-owned World Liberty Financial\u2019s stablecoin USD1 was launched in March 2025. It rapidly grew in value thanks to a $2 billion investment from Abu Dhabi\u2019s MGX. The funds were used to facilitate a deal with Binance, triggering waves of speculation and political fallout.<\/span><\/p>\n The fact that nearly all of USD1\u2019s 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 <\/span>$2.1billion<\/span> in market cap, making it the 5th largest stablecoin<\/a> at the time of writing.<\/span><\/p>\n The sudden rise of Trump\u2019s stablecoin couldn\u2019t come at a more controversial time. The U.S. Senate is preparing for a crucial vote on the GENIUS Act\u2014a landmark bill designed to regulate stablecoins.<\/span><\/p>\n Initially welcomed across party lines, the bill now faces fresh Democratic resistance. Critics argue that USD1\u2019s ties to a Trump-backed project and UAE-linked capital could open floodgates to political profiteering.<\/p>\n In fact, referencing the USD1 deal Senator Elizabeth Warren warned<\/a>:<\/p>\n \u201cThe Senate shouldn\u2019t pass a crypto bill this week to facilitate this kind of corruption,\u201d <\/span><\/p>\n<\/blockquote>\n The GENIUS Act proposes reserve rules, licensing, and compliance mandates. But with Trump\u2019s stablecoin in the spotlight, some lawmakers say it also opens the door for political profiteering.<\/span><\/p>\n The Senate vote is heading to the floor today<\/span><\/a>, 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\u2019s stablecoin ends up cementing its position or getting sidelined by legislation.<\/span><\/p>\n 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!\u00a0<\/span><\/p>\n The post Trump-Backed USD1 Becomes 5th Largest Stablecoin Ahead of GENIUS Act Vote<\/a> appeared first on CoinGape<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" 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\u2019s vote could have massive implications for the future of digital asset regulation in the US. Despite being a bipartisan […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[192,29,198,194,195,199,196,193,197,200],"class_list":["post-391580","post","type-post","status-publish","format-standard","hentry","category-business","tag-blockchain-business","tag-business","tag-coins","tag-crypto-business","tag-cryptocurrency-business","tag-fiat","tag-metaverse-business","tag-nft-business","tag-token","tag-token-business"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/391580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=391580"}],"version-history":[{"count":0,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/391580\/revisions"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=391580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=391580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=391580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}A $2B Deal and the Trump Connection<\/h2>\n
GENIUS Act Vote Under Fire<\/h2>\n
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What\u2019s Next for Trump\u2019s Stablecoin?<\/h2>\n