The post US Senators Raise Concerns About President Trump’s Potential Influence on USD1 Stablecoin Regulation appeared on BitcoinEthereumNews.com.

A coalition of U.S. Senators, spearheaded by Elizabeth Warren, is raising alarms about potential conflicts of interest surrounding President Trump and the proposed USD1 stablecoin. This situation has aroused scrutiny as concerns mount over Trump’s influence on federal regulators like the Fed and OCC, highlighting the lack of safeguards in the GENIUS Act. Senators articulated their fears, emphasizing that the financial interests entangled with a sitting president could jeopardize the integrity of the entire regulatory framework. U.S. Senators warn of potential conflicts of interest regarding President Trump and the USD1 stablecoin, questioning regulatory safety amid the drafting of the GENIUS Act. Warren-Led Group Flags Risks of Presidential Involvement in USD1 Approval On March 28, a group of lawmakers led by Senator Elizabeth Warren sent a letter to the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to express their concerns surrounding the USD1 stablecoin. They requested clarity on how these regulatory bodies plan to maintain integrity amidst the potential conflicts arising from Trump’s involvement. This inquiry coincides with Congress’s consideration of the GENIUS Act, which would grant the Fed and OCC broad regulatory authority over stablecoins. The letter explicitly points out that allowing a sitting president to facilitate the launch of a digital asset potentially linked to his financial interests poses significant risks to the financial system. “The President of the United States could sign legislation that would facilitate his own product launch and then retain authority to regulate his own financial company,” they stated, drawing a troubling picture of the influence Trump could exert over outcomes related to USD1. According to the Senators, the unique situation where a sitting president could profit from a digital currency regulated by agencies under his purview could undermine public trust and regulatory integrity. “The launch of a stablecoin directly…

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Filed under: News - @ March 29, 2025 2:14 pm