A stablecoin launched by a cryptocurrency firm linked to President Donald Trump has drawn scrutiny in Washington, where lawmakers are working to pass landmark stablecoin regulation. The coin, USD1, was introduced in March by World Liberty Financial (WLFI), a firm controlled in part by Trump and his family. The launch has intensified concerns about conflicts of interest at the highest levels of government.
WLFI’s USD1 stablecoin, pegged to the U.S. dollar, went live on March 4 with a total supply exceeding $3.5 million. Blockchain records confirm that its smart contract was deployed on both Ethereum and BNB Chain. Despite the release, the coin is not currently tradeable, according to the company.
The launch coincides with bipartisan movement on two key legislative efforts: the STABLE Act and the GENIUS Act. The GENIUS Act passed out of the Senate Banking Committee on March 13 in an 18–6 vote and awaits a full Senate floor vote. Chairman Tim Scott (R-S.C.) described the bill as “a bipartisan step forward” that would establish collateralization rules and require stablecoin issuers to comply with anti-money laundering regulations.
Conflict of Interest Fears Emerge
While the legislation aims to promote innovation and consumer protection, some lawmakers worry that Trump’s personal stake in WLFI could compromise public trust in the regulatory process. The firm’s website states that Trump and members of his family hold 60% of WLFI’s equity interests. Since September 2024, WLFI has raised $550 million across two public token sales.
“The concern would be that any law could be seen as financially benefiting Trump, making some lawmakers hesitant,” said Dmitrij Radin, CTO of blockchain firm Fideum. “While the bill could still pass, this twist might delay it or force stricter rules to keep it neutral.”
Democrats, including Senator Elizabeth Warren and Representative Jim Himes, have raised alarms over the potential conflict. Trump’s growing crypto involvement is seen by some as politicizing the stablecoin debate, injecting friction into what had been bipartisan negotiations.
WLFI’s rollout also follows earlier reports of the Trump family holding discussions with Binance over a potential stake and a possible pardon for former CEO Changpeng Zhao. Zhao has denied any such deal.
Despite the controversy, regulatory experts say WLFI’s coin appears to align with current legislative proposals. “The planned backing, audits, qualified custody, public blockchains and no native yield-bearing — all these elements are well in line with the GENIUS and STABLE acts,” said Fideum CEO Anastasija Plotnikova.
Industry professionals are urging lawmakers to provide clarity around crypto banking relationships before attention shifts to taxation. Meanwhile, concerns persist that political interference could push innovation offshore as banks and the Federal Reserve remain resistant to stablecoin adoption.
