WASHINGTON, D.C. — A cryptocurrency bill co-sponsored by U.S. Sen. Cynthia Lummis, R-Wyoming, needs “critical fixes” to prevent corruption such as bribery in light of President Donald Trump and his family’s recent involvement in meme coins, said U.S. Sen. Elizabeth Warren, D-Massachusetts.
Joe Jackson, a spokesman for Lummis, said the senator does not agree with Warren’s call for major changes to the GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. Stablecoins.
“No,” Jackson said in an email when asked if she agreed with Warren’s assessment. “Senator Lummis is working with Democrat Senators to address their concerns and get to a spot where bipartisan support can be reached on this important legislation. She believes that America must remain the world leader in digital assets.”
Tariff Exemptions, Pardons
Lummis’ press team did not make the senator available for an in-person or phone interview with Cowboy State Daily on Tuesday, following a long Senate floor speech by Warren that began Monday evening.
“The biggest corruption scandal in modern history is unfolding right now,” Warren said. “Trump has created the opportunity to trade presidential favors — like tariff exemptions, pardons, and government appointments — for crypto purchases that will directly benefit himself and his family.”
Trump on Monday used his Truth Social platform and an associated website, gettrumpmemes.com, to encourage purchases of his “$TRUMP” meme coins for a chance to join him for a gala dinner May 22 at his D.C.-area golf club. The top 220 meme coin holders were due to be granted access, the postings said.
According to the Associated Press, a company called CIC Digital, an affiliate of the Trump Organization, and another company receive “trading revenue derived from trading activities” of the Trump meme coins.
The GENIUS Act, sponsored by U.S. Sen. Bill Hagerty, R-Tennessee, has four co-sponsors including Lummis.
It enjoyed strong bipartisan support in a March vote by the Senate Banking Committee, which includes Lummis. It passed 18-6 with the backing of five Democrats, two of whom are co-sponsors.
But the bill has drawn scrutiny because of the Trump dinner offer. A vote by the full Senate on the measure is teed up for Thursday.
“If the GENIUS Act goes forward without changes, Donald Trump will continue to line his pockets with his crypto scams — while his policies continue to tank the economy for the rest of us,” Warren said in a statementforeshadowing her speech.
Stablecoin, Legislation Background
When the bill was unveiled in February, Lummis said in a news release: “Creating a bipartisan regulatory framework for stablecoins is critical to maintaining the U.S.’s dollar dominance and promoting responsible financial innovation.”
She added: “I’m proud to support Sen. Hagerty’s important legislation, which goes a long way towards protecting Wyoming’s regulatory framework for digital assets, and ensures stablecoin issuers have a real choice when it comes to a state or national charter.”
Dollar-denominated payment stablecoins are digital assets pegged to the U.S. dollar.
According to the Feb. 4 news release announcing the GENIUS Act, stablecoins “can improve transaction efficiency, expand financial inclusion, and strengthen the dollar’s supremacy as the world reserve currency by driving demand for U.S. Treasuries.”
It added: “The previous administration’s hostility toward crypto and refusal to provide clear regulatory guidelines has severely stifled stablecoin innovation.”
That statement was issued by the Banking Committee, chaired by Republican U.S. Sen. Tim Scott of South Carolina, one of the bill’s co-sponsors. The two Democratic co-sponsors are U.S. Sens. Kirsten Gillibrand of New York and Angela Alsobrooks of Maryland.
Murphy, Liccardo
Other Democrats are lining up with Warren on the issue as the floor vote looms on the GENIUS Act.
On Tuesday, U.S. Sen Chris Murphy of Connecticut and U.S. Rep. Sam Liccardo of California introduced the Modern Emoluments and Malfeasance Enforcement Act.
Murphy said in a news release the legislation would “prevent corrupt federal officials from using their position to profit off digital assets such as meme coins.”
Murphy’s statement said the Trump coin was “initially only worth a few cents, but it exploded in value upon limited release and drove Trump’s net worth temporarily north of $50 billion.”
“Each time the coin is released and traded, Trump makes money from trading fees, and he and his family have made more than $100 million from these fees,” Murphy said.
Sean Barry can be reached at sean@cowboystatedaily.com.
