A group of Democratic U.S. Senators has formally requested the Office of the Comptroller of the Currency (OCC) to publicly outline measures preventing former President Donald Trump and his family from exerting undue influence on stablecoin regulation. Senators Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), and Ron Wyden (D-OR) spearheaded the demand, citing serious concerns over potential conflicts of interest.
The senators highlighted the Trump family’s active involvement in the cryptocurrency market through their decentralized finance venture, World Liberty Financial, which launched the USD1 stablecoin. They pointed to the family’s direct financial ties to the success of USD1, which recently became the seventh-largest stablecoin globally with a market capitalization of $2.17 billion, exceeding offerings from established players like PayPal and Ripple.
Particular concern was raised regarding a significant $2 billion investment deal facilitated between Emirati firm MGX and cryptocurrency exchange Binance. The senators emphasized that this deal was financed using the USD1 stablecoin, deeming it a potential ‘model’ for corruption. They queried if safeguards exist to prevent the Trump family from leveraging relationships with OCC officials to weaken oversight beneficial to their venture.
Furthermore, the legislators requested the OCC to investigate competitors of World Liberty Financial. This initiative aims to ensure impartiality and a fair competitive environment within the stablecoin regulatory framework, preventing any potential favoritism.