Senators Raise Concerns Over Trump’s Involvement in USD1 Stablecoin Project
A group of US Senators, led by Elizabeth Warren, is concerned about President Trump’s involvement with the upcoming stablecoin USD1, backed by World Liberty Financial (WLF). Key points include:
- Senators sent a letter to the Federal Reserve and the Office of the Comptroller of the Currency (OCC) seeking clarity on regulatory independence regarding USD1.
- Concerns arise as Congress debates the GENIUS Act, which lacks conflict-of-interest protections for regulators overseeing stablecoins.
- Potential risks include Trump's ability to influence regulatory processes and financial aid related to USD1.
- The Senators warn that this could lead to unfair advantages for USD1 over competitors and undermine public trust in financial regulations.
- They seek answers on the approval process for USD1, potential financial support from the Fed during crises, and oversight of WLF's operations.
- The agencies must respond by April 11, 2025.
This situation underscores concerns about political influence on financial technologies, emphasizing the need for safeguards to protect public financial safety.