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California Representative Maxine Waters has raised concerns that President Donald Trump aims to replace the U.S. dollar with a stablecoin issued by his family-backed company, World Liberty Financial (WLFI). Speaking at an April 2 House Financial Services Committee hearing, Waters criticized Trump’s involvement in multiple cryptocurrency ventures, including the USD1 stablecoin launched in March. She suggested that Trump intends for government transactions, such as Social Security payments and tax collections, to utilize his own stablecoin, potentially leading to significant conflicts of interest.
These allegations have intensified debates over the STABLE Act, a bipartisan bill aimed at regulating stablecoins. Democratic lawmakers, including Waters, have proposed amendments to prevent government officials from holding financial interests in digital dollar-backed assets. They argue that without such provisions, officials could profit from reserves backing stablecoins, which typically consist of secure short-term U.S. treasuries. Republicans have rejected these amendments, citing concerns of overreach.
The Trump family’s expanding involvement in the cryptocurrency sector, notably through WLFI’s USD1 stablecoin, has complicated bipartisan efforts to pass stablecoin legislation. Democrats fear that the family’s financial stakes could lead to conflicts of interest, potentially influencing U.S. policy and financial systems.
