{"id":126036,"date":"2025-03-28T22:15:43","date_gmt":"2025-03-28T22:15:43","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126036"},"modified":"2025-03-28T22:15:43","modified_gmt":"2025-03-28T22:15:43","slug":"senators-press-regulators-on-trumps-wlfi-stablecoin","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126036","title":{"rendered":"Senators press regulators on Trump&#039;s WLFI stablecoin"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsFive 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\u2019s family.<br \/>\nIn a March 28 letter from the US Senate Banking Committee, Massachusetts Senator Elizabeth Warren and four other Democrats asked the Federal Reserve\u2019s committee chair on supervision and regulation, Michelle Bowman, and acting comptroller of the currency, Rodney Hood, how they intended to regulate WLFI and its stablecoin, USD1.<br \/>\nMarch 28 letter from five Democratic senators to OCC, Fed leadership. Source: US Senate Banking CommitteeThe letter came as 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.\u00a0<br \/>\nTrump also signed an executive order in February attempting to have all federal agencies \u2014 purportedly including the OCC \u2014 \u201cregularly consult with and coordinate policies and priorities\u201d with White House officials, giving the US president unprecedented control.\u00a0<br \/>\n\u201cPresident Trump\u2019s involvement in this venture, as he strips financial regulators of their independence and Congress simultaneously considers stablecoin legislation, 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],\u201d said the letter, adding:\u00a0<br \/>\n\u201cThe launch of a stablecoin directly tied to a sitting President who stands to benefit financially from the stablecoin\u2019s success presents unprecedented risks to our financial system.\u201d<br \/>\nRelated: Trump\u2019s USD1 stablecoin deepens concerns over conflicts of interest<br \/>\nSince World Liberty launched in September 2024 \u2014 months before the US election and Trump\u2019s inauguration \u2014 many of the firm\u2019s goals have been shrouded in secrecy. The project\u2019s website notes that Trump and some of his family members control 60% of the company\u2019s equity interests.\u00a0<br \/>\nAs 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\u2019s son, Donald Trump Jr., also pitched USD1 from the DC Blockchain Summit on March 26 with three of WLFI\u2019s co-founders.<br \/>\nMagazine: Trump\u2019s crypto ventures raise conflict of interest, insider trading questions<a href=\"https:\/\/cointelegraph.com\/news\/donald-trump-stablecoin-financial-regulators-scrutiny?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsFive 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&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126036"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126036"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126036\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126036"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}