US Democratic senators called on regulatory leadership to consider potential conflicts of interest arising from the stablecoin launched by World Liberty Financial, backed by Donald Trump's family.
Senators' Appeal
On March 28, Massachusetts Senator Elizabeth Warren and four other Democratic senators addressed a letter to the Senate Banking Committee asking Michelle Bowman, chair of the Federal Reserve’s supervision and regulation committee, and acting comptroller of the currency Rodney Hood how they plan to regulate World Liberty Financial and its stablecoin USD1.
Regulation and Legislative Initiatives
As Congress members are considering legislative initiatives to regulate stablecoins such as the GENIUS Act, the bill may grant the OCC and Federal Reserve oversight powers over stablecoin issuers, including companies like WLFI and their USD1.
Trump's Control and Reaction
Since World Liberty's launch in September 2024, many of the company’s goals have remained secretive. The project’s website notes that Donald Trump and his family members control 60% of the company’s equity interests. As of March 14, the company completed two public token sales raising $550 million. Trump Jr. also presented the USD1 project at the DC Blockchain Summit on March 26 with three of WLFI’s co-founders.
Amid ongoing legislative developments and oversight from regulatory bodies, the issue of potential conflicts of interest and transparency in World Liberty Financial's actions remains open.
