Five Democratic Senators Call on Regulators to Consider Conflicts of Interest from Trump Family-Backed Stablecoin

Five Democratic lawmakers in the US Senate have called on leadership at regulatory agencies to consider the potential conflicts of interest from a stablecoin launched by World Liberty Financial (WLFI), the crypto firm backed by US President Donald Trump's family.

Five Democratic lawmakers in the US Senate have called on leadership at the Federal Reserve and the Treasury Department to consider the potential conflicts of interest from a stablecoin launched by crypto firm World Liberty Financial (WLFI).

The senators — Massachusetts Senator Elizabeth Warren, and Senators Bob Menendez, A.J. Durbin, Richard Blumenthal and Delia Carrillo — penned a letter to Michelle Bowman, the Fed’s committee chair on supervision and regulation, and Rodney Hood, acting comptroller of the currency.

The letter, which was dated March 28 and seen by Blockworks, followed reports that members of Congress are considering legislation to regulate stablecoins through the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act. The bill, if signed into law, would essentially allow the Office of the Comptroller of the Currency (OCC) and Federal Reserve to oversee stablecoin regulation, including for issuers like WLFI and its USD1 coin.

The senators said they were also concerned about President Donald Trump’s involvement in the venture, noting that he signed an executive order in February attempting to have all federal agencies — purportedly including the OCC — “regularly consult with and coordinate policies and priorities” with White House officials, giving the president unprecedented control.

“President Trump’s involvement in this venture, as he strips financial regulators of their independence and Congress simultaneously considers legislation to regulate cryptocurrencies, 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 senators said in the letter.

Since World Liberty launched in September 2024 — months before the US election and Trump’s inauguration — many of the firm’s goals have been shrouded in secrecy. The project’s website notes that Trump and some of his family members control 60% of the company’s equity interests.

The president’s son, Donald Trump Jr., also pitched USD1 from the DC Blockchain Summit on March 26 with three of the company’s co-founders. As of March 14, World Liberty had completed two public token sales, netting the company a combined $550 million. On March 24, the project confirmed launching its first stablecoin on the BNB Chain and Ethereum.