Concerns Raised Over President Trump's Involvement in USD1 Stablecoin Project

Concerns have been raised over President Donald Trump's involvement in the USD1 stablecoin project, backed by World Liberty Financial (WLF).

A group of U.S. Senators, led by Elizabeth Warren, have raised concerns over President Donald Trump's involvement in the USD1 stablecoin project, backed by World Liberty Financial (WLF).

In a March 28, 2025, letter to Federal Reserve Chair Jerome Powell and Office of the Comptroller of the Currency (OCC) Acting Comptroller Mark McDiarmid, the Senators questioned how the agencies plan to mitigate potential conflicts of interest.

The lawmakers are interested in how the agencies will manage the approval process for USD1, what criteria they will use to decide on liquidity support to the stablecoin during financial crises, and how they will oversee WLF's business practices.

The Senators' letter follows ongoing discussions around the GENIUS Act, which would grant both the Fed and OCC significant authority over stablecoin regulation. However, the bill lacks provisions to prevent conflicts of interest.

"We are concerned that, given the structure of the GENIUS Act and the lack of applicable ethics rules for the President, the President could use his power to influence administrative agency decisions in a way that benefits the USD1 stablecoin and/or World Liberty Financial, to the detriment of other parties and the fairness of the administrative process," the Senators wrote.

They added: "For example, we are concerned that the President could direct the OCC to delay or truncate its review of USD1, or to approve it despite material deficiencies.

"The President could also act to discourage the administrative agencies from taking steps to enforce the applicable law against World Liberty Financial for violations of the law.

"Or, in a time of financial crisis, the President could attempt to pressure the Federal Reserve into providing emergency financial support to USD1, while refusing to provide similar support to other private companies or to the broader economy."

The Senators also raised the possibility that Trump could push the Fed to establish a master account at the central bank for WLF, potentially giving USD1 an advantage over its competitors.

"In the absence of clear legal guidance and administrative safeguards, there is a serious risk that the President’s financial interest in USD1 and World Liberty Financial could be used to influence the administrative agencies’ actions in contravention of the applicable statutes and administrative law principles," they wrote.

The lawmakers requested that both the Fed and OCC respond by April 11, 2025.

In addition to Senator Warren, Senators Ron Wyden, Chris Van Hollen, Jack Reed, and Cory Booker also signed the letter.