The post Trump’s USD1 stablecoin deepens concerns over conflicts of interest appeared on BitcoinEthereumNews.com.

World Liberty Financial (WLFI), the Trump family’s crypto project, is planning to release a stablecoin, raising concern over the US president’s exposure to the digital asset industry. The project released a memecoin immediately prior to President Donald Trump’s inauguration, the price of which skyrocketed and crashed soon after, causing many to accuse WLFI of a pump-and-dump scheme. WLFI also made multimillion-dollar purchases of crypto tokens immediately prior to important crypto-related events the president has attended or announcements influencing the industry. WLFI purchased $20 million of various tokens ahead of the March 7 White House Crypto Summit.  As World Liberty Financial’s portfolio grows and regulator oversight disappears from the crypto industry, observers and legal scholars are becoming increasingly concerned over conflicts of interest within the Trump administration.  Son Eric Trump pumps his father’s memecoin ahead of the inauguration. Source: Eric Trump Trump’s stablecoin, USD1, riddled with liabilities  WLFI announced on March 25 that it will launch the new stablecoin USD1, “100% backed by short-term US government treasuries, US dollar deposits, and other cash equivalents.” WLFI co-founder Zach Witkoff said in the announcement that the coin can be used for “seamless, secure cross-border transactions.”  News of USD1’s forthcoming release came just days after WLFI secured more than $500 million through the sale of its own WLFI tokens.  Observers have already begun to raise the alarm about the possible security risks posed by a stablecoin connected to the president. There are also concerns over the possibility of market manipulation and violations of the emoluments clause of the US Constitution — a section of the document that protects against undue influence over American leaders.  As regards the latter, cyber and digital media attorney Andrew Rossow told Cointelegraph that the stablecoin is “a direct affront to constitutional safeguards meant to prevent conflicts of interest.” “With…

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Filed under: News - @ March 27, 2025 5:27 am