Lawmakers Warn of Unprecedented Conflict of Interest as Trump-Linked USD1 Stablecoin Gains Traction
A group of Democratic senators, led by Senator Elizabeth Warren, has raised alarms over potential conflicts of interest involving President Donald Trump and his family’s crypto-related business ventures — particularly surrounding a stablecoin called USD1 launched by the Trump-affiliated World Liberty Financial.
In a letter sent Thursday to Jonathan Gould, head of the Office of the Comptroller of the Currency (OCC), Senators Warren, Chris Van Hollen, and Ron Wyden expressed concern that Trump’s private interests in crypto could influence federal stablecoin regulation — a risk they argue could undermine the integrity of the U.S. financial system.
“We are concerned about Trump and his family’s continued use of cryptocurrency business ventures to line their pockets,” the letter states.
OCC’s New Role Under Scrutiny
The warning comes in light of the recent passage of the GENIUS Act, legislation that designates the OCC as the primary regulator for stablecoins in the U.S. While the bill aims to provide clarity and oversight for digital dollar-pegged assets, critics argue it lacks provisions to prevent self-dealing by government officials — particularly the sitting president and his affiliates.
“The bill does nothing to prevent President Trump, his family, or his affiliates from financially benefiting from the issuance and sale of stablecoins,” the senators wrote.
Trump-Linked USD1 Stablecoin Raises Ethical Flags
At the center of the controversy is USD1, a stablecoin issued in March 2024 by World Liberty Financial, a DeFi platform tied to the Trump family. USD1 has rapidly grown in prominence and currently holds a market capitalization of $2.17 billion, making it the seventh-largest stablecoin globally, according to CoinGecko — ahead of those issued by PayPal and Ripple.
The senators argue that Trump’s personal wealth is “intricately tied” to the success of USD1 and other crypto ventures, calling it an “unprecedented conflict of interest.”
“The launch of a stablecoin directly tied to a sitting President who stands to benefit financially is a significant threat to our financial system,” the letter states.
MGX-Binance Deal Branded “Model for Corruption”
The lawmakers also point to a $2 billion investment deal involving Emirati firm MGX and crypto exchange Binance, in which USD1 is being used as the settlement currency. They allege this arrangement could yield hundreds of millions of dollars for the Trump family.
“This is a staggering model for corruption,” the senators wrote, noting that Binance, which helped develop USD1’s codebase, pleaded guilty to U.S. anti-money laundering and sanctions violations in 2023.
The deal has drawn additional scrutiny because it involves a foreign government-backed investor (MGX) and a foreign company (Binance) with a history of regulatory violations in the United States.
Questions for OCC and Demands for Action
The letter ends with a series of pointed questions to Comptroller Gould, including:
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Whether President Trump can remove him at will;
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Whether Gould would resign and provide documentation to Congress if faced with political pressure;
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Whether the OCC intends to investigate World Liberty Financial and its competitors.
The senators have asked for a formal response by August 14.
A Test for Crypto Governance in the Trump Era
The OCC — now charged with overseeing a fast-evolving and politically charged stablecoin industry — faces mounting pressure to ensure that regulatory decisions remain free from presidential influence.
While the Trump administration has signaled its support for digital assets and even proposed the formation of a Strategic Bitcoin Reserve, critics argue that such moves may be driven as much by personal financial interests as by policy strategy.
As USD1 continues to gain adoption and high-level political entanglements deepen, this case may serve as a defining moment in the intersection of cryptocurrency and government ethics.
