A group of US Senators, led by Elizabeth Warren , is raising alarms over President Trump’s reported connection to a new stablecoin project called USD1. This digital currency is backed by World Liberty Financial (WLF), and lawmakers worry that Trump’s involvement could influence how federal agencies like the Federal Reserve and the Office of the Comptroller of the Currency (OCC) regulate it. On March 28, the Senators sent a letter to both the Fed and OCC asking them to explain how they plan to protect regulatory independence with USD1’s upcoming launch. Their concerns are even more urgent as Congress debates the GENIUS Act, a bill that could give the Fed and OCC broad power over stablecoin oversight. However, the GENIUS Act does not include any rules to prevent conflicts of interest. The Senators warned that the President could benefit from a product he has the power to regulate. They described this as a serious risk to public trust and financial stability. The situation, they argue, is unprecedented. If a sitting president can influence regulation of a project that directly profits him, it creates the possibility of unfair treatment and weakens the credibility of US regulators . They presented different ways Trump could impact the USD1 project through his position. For example, he could interfere in the OCC’s approval process for the stablecoin or discourage enforcement actions against WLF. Another concern is that the President might pressure the Federal Reserve to offer emergency financial aid to USD1 if market problems arise—help that might not be given to other similar projects. The letter also warns that Trump might direct the Fed to give WLF a master account at the central bank, giving the company special access that competitors wouldn’t receive. This kind of political involvement, the Senators said, creates a real danger of economic manipulation. Without conflict-of-interest protections in place, they argue, Trump could use his position to promote USD1 while blocking support or approval for rival stablecoins. This could distort the entire regulatory process and hurt public confidence in financial fairness. To prevent this, the Senators are demanding answers on several key issues. They want to know how the Fed and OCC will handle the approval of USD1, whether the Fed would be allowed to offer financial support during a crisis, and how they plan to oversee WLF’s business behavior. The Senators have asked the agencies to respond by April 11, 2025. The letter was signed by Elizabeth Warren, Ron Wyden, Chris Van Hollen, Jack Reed, and Cory Booker. This situation highlights growing concerns about political power and its influence on new financial technologies. With stablecoins becoming more common, lawmakers want to make sure that personal or political gain does not interfere with public financial safety.
