Source: Cointelegraph Original: "{title}"

Five Democratic senators in the U.S. Senate are urging the leadership of regulatory agencies to consider potential conflicts of interest related to the stablecoin launched by World Liberty Financial (WLFI), a company supported by the family of U.S. President Donald Trump.

In a letter from the U.S. Senate Banking Committee dated March 28, Massachusetts Senator Elizabeth Warren and four other Democratic senators inquired of Michelle Bowman, the chair of the Federal Reserve's supervisory and regulatory committee, and Rodney Hood, the acting director of the Office of the Comptroller of the Currency (OCC), about their plans to regulate WLFI and its stablecoin USD1.

The five Democratic senators sent a letter to the leadership of the OCC and the Federal Reserve on March 28. Source: U.S. Senate Banking Committee

At the time this letter was released, Congress members were considering legislation to regulate stablecoins through the "Guidance and Establishment of a National Innovation Act for U.S. Stablecoins" (GENIUS Act). If this bill is signed into law, it would essentially allow the OCC and the Federal Reserve to oversee the regulation of stablecoins, including issuers like WLFI and its USD1 coin.

Trump also signed an executive order in February attempting to have all federal agencies—reportedly including the OCC—"regularly consult and coordinate policies and priorities with White House officials," granting the U.S. president unprecedented control.

"The involvement of President Trump in this project, while undermining the independence of financial regulatory agencies, coincides with Congress considering stablecoin legislation, creating an unusual conflict of interest that poses unprecedented risks to our financial system and the integrity of decisions made by [the Federal Reserve and OCC]," the letter stated, adding:

"The launch of a stablecoin directly related to the sitting president, who stands to benefit from the success of the stablecoin, poses unprecedented risks to our financial system."

Since World Liberty launched in September 2024—just months before the U.S. elections and Trump's inauguration—many of the company's goals have remained shrouded in secrecy. The project's website indicates that Trump and some of his family members control 60% of the company's equity interests.

As of March 14, World Liberty has completed two public token sales, netting the company $550 million. On March 24, the project confirmed the launch of its first stablecoin on the BNB Chain and Ethereum. The president's son, Donald Trump Jr., also promoted USD1 alongside three co-founders of WLFI at the DC Blockchain Summit on March 26.

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