US Democrats: Trump's Family Stablecoin USD1 Could Undermine Regulatory Independence
Summary
- Democratic senators reported concerns that Trump family's stablecoin USD1 could undermine the independence of financial regulation.
- World Liberty Financial launched USD1, which could pose unprecedented risks to the financial system.
- Concerns are growing about the potential for companies like WLFI to exert political influence.
US Democratic senators have expressed strong concerns about the stablecoin 'USD1' associated with the Trump family. Previously, 'World Liberty Financial', a virtual asset platform of President Donald Trump's family, announced the launch of its own stablecoin USD1.
According to the cryptocurrency-focused media outlet Ecoinimist on the 29th, on the 28th (local time), five members of the Democratic Senate Banking Committee, including Senator Elizabeth Warren, sent a letter to Federal Reserve (Fed) Board Member Michelle Bowman and Acting Comptroller of the Currency (OCC) Rodney Hood, demanding thorough oversight of World Liberty Financial (WLFI) and USD1.
Democratic senators warned, "The Trump family holds 60% of WLFI shares, and President Trump has issued executive orders that weaken the independence of financial regulatory agencies," adding, "If projects with Trump's interests influence regulatory agencies and legislative discussions, the financial system could face unprecedented risks."
Last month, President Trump issued an executive order requiring all federal agencies to regularly consult with the White House on policies. Some voices are concerned that such measures could undermine the independence of financial regulatory agencies like the Fed and OCC.
The media added, "The US Congress is about to vote on the stablecoin bill 'Genius Act', and there is growing concern in the industry about the potential for companies like WLFI to exert political influence."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
