Trump’s USD1 Stablecoin Under Fire as Senators Demand OCC Action

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President Trump’s family is deep in crypto and lawmakers want answers.

Three top Democratic senators are pressing U.S. bank regulators to explain how they plan to handle what they say is a serious conflict of interest: the President of the United States overseeing crypto regulation while his own family profits from it.

In a letter to Office of the Comptroller of the Currency (OCC) head Jonathan Gould, Senators Elizabeth Warren, Ron Wyden, and Chris Van Hollen raised concerns over Trump’s ties to a new stablecoin called USD1, launched by his family’s crypto firm, World Liberty Financial.

Crypto Rules Written by Those Who Profit?

The issue comes just weeks after Trump signed the GENIUS Act, a new law that gives the OCC broad authority over stablecoin regulation. That makes Gould the top cop in a space where the Trump family is now directly involved.

“Trump and his family’s continued use of cryptocurrency business ventures to line their pockets” poses a threat to financial fairness, the senators said in their letter.

USD1 and the $2B Binance Connection

Launched in early 2024, USD1 has already grown into the 7th-largest stablecoin globally, with a market cap of $2.17 billion ahead of PayPal and Ripple’s offerings.

But its rapid rise has sparked concern. 

The letter points to a $2 billion investment deal between Emirati firm MGX and Binance, financed using USD1. Senators claim the deal could deliver “potentially hundreds of millions of dollars” to Trump’s family.

They also flagged Binance’s role in helping build the stablecoin’s code.

“A Staggering Model for Corruption”

The senators called the situation “a staggering model for corruption,” noting that this is the first time a sitting U.S. President could directly profit from a stablecoin while holding office.

They’ve asked Gould whether he believes Trump can remove him at will, whether he’d resign under pressure, and how he plans to ensure fair oversight of USD1 and its competitors.

They’ve given him a deadline of August 14 to respond.

Meanwhile, a Second Scandal Brews

Alongside the crypto concerns, Senator Warren released a new report earlier this month exposing how over $500 million in donations, including gifts like a $400 million jet from Qatar, have been pledged to Trump’s upcoming Presidential Library.

The report alleges that these donations line up with key decisions from the Trump administration – including corporate mergers, lawsuits, and foreign policy moves.

“Government should work for the American people, not just whichever giant company or foreign government can dump the most money into the president’s future library,” Warren said.

With regulation, reputation, and billions at stake, the pressure is now squarely on Gould. What will his response be?