Binance faces intensified regulatory examination following its strategic role in promoting the USD1 stablecoin issued by World Liberty Financial (WLF), a company associated with former U.S. President Donald Trump and his family. The exchange’s involvement highlights growing concerns over cryptocurrency stablecoins’ intersection with political figures and evolving regulatory landscapes.
Reports indicate Binance actively promoted USD1 before its launch, with approximately 90% of the stablecoins used in Abu Dhabi-based MGX’s $2 billion investment remaining in custodial wallets controlled by Binance. This concentration raises questions about custodial benefits and market influence.
Donald Trump’s expanding cryptocurrency ventures, including both WLF and the TRUMP memecoin, have attracted significant attention from U.S. lawmakers during ongoing regulatory discussions. The developments underscore deepening ties between political figures and digital asset initiatives.
The revelations coincide with legislative deliberations surrounding the stalled House GENIUS Act, which would establish a regulatory framework for payment stablecoins in the United States. The situation illustrates complex dynamics between cryptocurrency platforms, political interests, and evolving oversight mechanisms.