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Trump’s family just jumped into crypto, and Washington is not happy. With lawmakers already debating how to regulate stablecoins, this move has made things even messier.
The Trump Stablecoin—What’s the Deal?
World Liberty Financial (WLFI), a company backed by Donald Trump’s sons, just announced USD1, a stablecoin pegged to the U.S. dollar. It’s backed by cash reserves, short-term U.S. Treasurys, and other assets. Plus, it’ll run on Ethereum and Binance’s blockchain.
Sounds like just another crypto launch, right? Not quite.
Politicians Smell a Conflict of Interest
The problem? Trump is running for president, and if he wins, he’ll have major influence over financial regulations—including crypto laws. That’s why Democratic senators, led by Elizabeth Warren, are sounding the alarm.
Congress is already working on two key bills to regulate stablecoins:
- The STABLE Act – Aims to set rules for stablecoin issuers, ensuring they follow strict guidelines while giving them a choice between state or federal oversight.
- The GENIUS Act – Focuses on ensuring stablecoins are fully backed and compliant with anti-money laundering laws. It recently passed a Senate committee vote 18-6.
Now, some lawmakers worry that any stablecoin laws passed could be seen as personally benefiting the Trump family, which could slow everything down or even change the way regulations are written.
What Happens Now?
WLFI says they’re following all the rules—reserves, audits, and blockchain transparency. But critics say it doesn’t matter. The bigger issue is whether crypto and politics should mix at all.
One thing’s clear: with Trump stepping into stablecoins, the battle over crypto regulation in the U.S. just got a whole lot more interesting.
