TechFlow reported on March 29 that, according to Cointelegraph, five Democratic senators sent a letter to the Federal Reserve and the Office of the Comptroller of the Currency (OCC), raising concerns about the "unprecedented risks" posed by USD1, a stablecoin launched by World Liberty Financial (WLFI), a company backed by the Trump family. The letter pointed out that Trump has undermined regulatory independence through a February executive order and holds a 60% stake in WLFI, creating a significant conflict of interest.
The letter comes as lawmakers are considering passing the GENIUS (Guiding Establishment of National Innovation with United States Stablecoins) Act to regulate stablecoins. If signed into law, the bill would empower the OCC and the Federal Reserve to oversee stablecoin regulation, including issuers such as WLFI and its USD1 token.
