Five Democratic senators call on US regulatory agencies to consider conflicts of interest from Trump-backed stablecoin

Five Democratic lawmakers in the US Senate have called on leadership at regulatory agencies to consider the potential conflicts of interest

Five Democratic lawmakers in the U.S. Senate have penned a letter to leadership at the Federal Reserve and Office of the Comptroller of the Currency, expressing concerns over potential conflicts of interest.

The senators, including Massachusetts Senator Elizabeth Warren, are seeking input on how the institutions plan to handle the regulation of World Liberty Financial (WLFI), a crypto firm backed by U.S. President Donald Trump's family.

In a March 28 letter obtained by DeBanked, the senators inquired about the institutions' actions to oversee the stablecoin issuers and if any personnel changes were being made in preparation for stablecoin legislation.

March 28 letter from five Democratic senators to OCC, Fed leadership. Source: U.S. Senate Banking Committee

The senators' questions stem from the pending legislation, Guiding and Establishing National Innovation for U.S. Stablecoins or GENIUS Act, which Congress is considering to regulate stablecoins. The bill would see the OCC and Federal Reserve largely tasked with overseeing stablecoin regulation, including for issuers like WLFI and its USD1 coin.

Trump also 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, ultimately giving the U.S. president control over financial institutions' actions.

“President Trump’s involvement in this venture, as he strips financial regulators of their independence and Congress simultaneously considers legislation to regulate stablecoins, presents an extraordinary conflict of interest that could create unprecedented risks to our financial system and to the integrity of decisions made by the [Federal Reserve and OCC],” the senators said in the letter.

Since World Liberty launched in September 2024 — months before the U.S. 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.

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. The president's son, Donald Trump Jr., also pitched USD1 from the D.C. Blockchain Summit on March 26 with three of WLFI's co-founders.