Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
President Trump’s Role in USD1 Stablecoin Prompts Regulatory Questions

President Trump’s Role in USD1 Stablecoin Prompts Regulatory Questions

BeInCryptoBeInCrypto2025/03/29 06:00
By:Oluwapelumi Adejumo

US lawmakers are demanding clarity from the Federal Reserve and OCC on how they will safeguard regulatory integrity amid Trump and USD1 stablecoin ties.

A coalition of US Senators is raising serious concerns about a potential conflict of interest involving President Donald Trump and an upcoming stablecoin project called USD1.

The digital asset, backed by World Liberty Financial (WLF), has drawn scrutiny due to Trump’s reported ties to the company behind it.

Warren-Led Group Flags Risks of Presidential Involvement in USD1 Approval

On March 28, a group of lawmakers led by Senator Elizabeth Warren sent a letter to the Federal Reserve and the Office of the Comptroller of the Currency (OCC).

They asked both agencies to clarify how they plan to uphold regulatory integrity regarding the impending USD1 stablecoin.

The request comes as Congress considers the GENIUS Act, a bill that would grant the Fed and OCC broad authority over stablecoin regulation.

“The President of the United States could sign legislation that would facilitate his own product launch and then retain authority to regulate his own financial company,” they noted.

The Senators warned that allowing a sitting president to profit from a digital currency regulated by federal agencies under his influence poses a major threat to financial stability. They argue that such a situation is without precedent and could erode public trust in the regulatory process.

“The launch of a stablecoin directly tied to a sitting President who stands to benefit financially from the stablecoin’s success presents unprecedented risks to our financial system,” They argued.

The letter outlines scenarios where Trump could directly or indirectly influence decisions involving USD1.

For instance, the President could interfere with the OCC’s evaluation of the stablecoin’s application or discourage enforcement actions against WLF.

They also suggested that Trump could pressure the Federal Reserve to provide emergency financial support for USD1 during market volatility—support that may not extend to competing stablecoins.

“[Trump] could also attempt to direct the Fed to establish a master account at the central bank for WLF. He could intervene to deny such assistance to USD1’s competitors,” the lawmakers stressed.

In addition, the Senators noted that the GENIUS Act contains no conflict-of-interest provisions that would prevent Trump from using his office to benefit financially from the stablecoin’s success.

This absence of guardrails, they say, opens the door to regulatory favoritism and economic manipulation.

Considering this, the lawmakers demanded clarification on how the Fed and OCC would handle key issues. These include the approval process for USD1, the potential creation of liquidity support during crises, and WLF’s oversight of potentially unsafe business practices.

The agencies must submit their responses by April 11, 2025. The letter was signed by Senators Elizabeth Warren, Ron Wyden, Chris Van Hollen, Jack Reed, and Cory Booker.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Fortunate Trader Strikes Gold with TROLL Coin Boom!

In Brief The trader's $23,000 investment in TROLL coalesced into a $2.5 million portfolio. With entertainment in mind, TROLL coin thrives on community interaction. Memecoin gains come with volatility risks, cautioning prudent investment strategies.

Cointurk2025/08/05 13:25
Fortunate Trader Strikes Gold with TROLL Coin Boom!