US Senator Questions TrumpCoin Stablecoin Launch Poses Regulatory Risk

BlockBeats News, March 29th. According to Cointelegraph, five Democratic senators have written to the Federal Reserve and OCC questioning the "unprecedented risks" posed by the USD1 stablecoin launched by World Liberty Financial Initiative (WLFI) supported by the Trump family. The letter pointed out that Trump, through a February executive order, undermined regulatory independence and holds a 60% stake in WLFI, leading to a significant conflict of interest. WLFI, established since September 2024, has raised $550 million through two token sales and launched USD1 on the BNB chain and Ethereum on March 24th. This move coincides with the congressional consideration of the "GENIUS Act," which may grant regulatory power to the OCC and Federal Reserve, raising concerns about the stability of the financial system.