Five Democratic senators, led by Elizabeth Warren, are demanding answers from US regulators over potential conflicts of interest tied to World Liberty Financial’s (WLFI) new stablecoin, USD1.
WLFI has direct ties to President Trump’s family. That connection has set off alarm bells in Washington, where lawmakers are questioning whether financial regulators can remain independent while overseeing a project so closely linked to the White House.
In a letter dated March 28, the senators called on top financial officials—including Michelle Bowman of the Federal Reserve and Rodney Hood of the Office of the Comptroller of the Currency (OCC)—to explain how they plan to regulate WLFI and its digital currency.
This request comes at a time when Congress is debating new stablecoin regulations. Lawmakers are considering a bill called the GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins. If passed, the act would give the OCC and the Federal Reserve direct authority to oversee stablecoin issuers like WLFI and its USD1 coin. This would mark a major shift in how digital currencies are governed in the US.
Adding to the controversy, President Trump signed an executive order in February that requires federal agencies, including the OCC, to coordinate more closely with the White House. Critics argue that this move gives the president greater control over financial regulators, which could compromise their independence.
The senators’ letter highlights concerns that Trump’s involvement in WLFI could create an unprecedented conflict of interest, especially as his administration shapes financial policy.
“President Trump’s involvement in this venture, as he strips financial regulators of their independence and Congress simultaneously considers stablecoin legislation, presents an extraordinary conflict of interest that could create unprecedented risks to our financial system and to the integrity of decisions made by the [Fed and OCC],” the letter noted.
Lawmakers argue that a sitting president financially benefiting from a stablecoin’s success could lead to biased decision-making and put the financial system at risk.
WLFI launched its USD1 stablecoin in March 2025, aiming to compete in the fast-growing digital currency market. The stablecoin is available on major blockchains like Ethereum and BNB Chain, but critics have raised concerns about the company’s lack of transparency.
Since its founding in September 2024, WLFI has raised $550 million through two public token sales. Its political connections have drawn significant attention, with Donald Trump Jr. actively promoting the stablecoin at the DC Blockchain Summit earlier this month. Trump and his family control 60% of WLFI, raising further questions about conflicts of interest.
As Congress moves closer to deciding on new stablecoin regulations, lawmakers and regulators will need to address these concerns before they impact the financial system.
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