Five Democratic senators demand answers on Trump’s involvement in WLFI’s USD1 stablecoin.
Lawmakers warn of conflicts of interest as Trump’s family owns 60% of WLFI.
Five Democratic senators, led by Elizabeth Warren, have raised concerns about potential conflicts of interest in President Donald Trump’s involvement with World Liberty Financial (WLFI) and its new stablecoin, USD1. In a letter dated March 28, the senators pressed U.S. regulators on how they plan to oversee WLFI and ensure financial integrity.
The letter was addressed to Michelle Bowman of the Federal Reserve and Rodney Hood, acting comptroller of the currency. Lawmakers are seeking regulatory clarity as Congress debates the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. If passed, the bill would grant oversight powers to the Federal Reserve and the Office of the Comptroller of the Currency (OCC).
WLFI launched in September 2024, months before Trump’s re-election. The company’s website confirms that Trump and his family own 60% of its equity interests. As of March 14, the firm had raised $550 million through two public token sales. The project officially launched its stablecoin, USD1, on March 24 on Ethereum and BNB Chain.
Donald Trump Jr. promoted USD1 at the DC Blockchain Summit on March 26, alongside three of WLFI’s co-founders. Critics argue that Trump’s financial ties to the company may influence policy decisions, leading to unfair advantages.
Conflict of Interest in Stablecoin Regulation
The senators emphasize that a sitting president financially benefiting from a stablecoin’s success creates a serious conflict of interest. They warn that Trump’s control over financial regulators could undermine regulatory independence.
“The launch of a stablecoin directly tied to a sitting president who stands to benefit financially presents unprecedented risks to our financial system,” the letter states. Lawmakers are calling for strict oversight to prevent undue influence over financial policies.
Congress is advancing the GENIUS Act, which aims to impose strict regulations on stablecoin issuers like WLFI. The bill would increase transparency and accountability within the stablecoin sector if enacted. The legislation seeks to prevent conflicts of interest and ensure financial stability.
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