U.S. senators are raising red flags over potential financial conflicts involving former President Donald Trump and his family’s ventures in cryptocurrency, particularly surrounding a newly launched stablecoin, USD1.
Concerns Over Political Influence on Crypto Regulations
On July 31, Democratic Senators Elizabeth Warren, Chris Van Hollen, and Ron Wyden submitted a letter to Office of the Comptroller of the Currency (OCC) head Jonathan Gould, urging him to ensure that Trump’s financial interests do not shape U.S. stablecoin regulations.
“Trump and his family’s continued use of cryptocurrency business ventures to line their pockets” poses an unprecedented threat to financial integrity,” the senators warned.
Their concern stems from the GENIUS Act, a recently enacted law that designates the OCC as the primary regulator for stablecoins—without including safeguards against presidential profiteering from digital assets.
USD1 Stablecoin Raises Conflict of Interest Allegations
In March 2024, the Trump-affiliated platform World Liberty Financial introduced USD1, a new stablecoin now ranked as the seventh-largest globally. Senators noted that the Trump family’s wealth is heavily tied to USD1’s performance, creating what they call a direct conflict between financial gain and policy influence.
“This is a stablecoin directly tied to a sitting president who could personally benefit from its success,” the letter stated.
A $2B Investment Sparks Corruption Accusations
The lawmakers specifically criticized a $2 billion investment agreement involving Emirati firm MGX, Binance, and the use of USD1 as the transaction medium. They claimed the deal could net the Trump family hundreds of millions, calling it “a staggering model for corruption.”
Additionally, Binance’s involvement in building the codebase for USD1 drew scrutiny due to its prior guilty pleas related to U.S. anti-money laundering violations.
Lawmakers Demand Accountability and Investigation
The letter included a set of direct questions to OCC head Jonathan Gould, including whether:
- Trump could remove Gould at will,
- Gould would testify before Congress if pressured,
- The OCC would investigate World Liberty Financial’s competitors.
The senators requested a response by August 14, aiming to assess if current regulatory oversight is sufficient to prevent presidential abuse of financial power through emerging digital assets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.