March 28, 2025

Warren, Wyden, Van Hollen, Colleagues Question Fed and OCC on Serious Risks Posed by Donald Trump Regulating His Own Stablecoin

Trump-backed stablecoin launched as President strips financial regulators of independence and Congress considers stablecoin legislation

Senate Banking and Finance Committee Leaders: “In effect, 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.” 

Read letter here (PDF)

Washington, DC – United States Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee; Senator Ron Wyden (D-Ore.), Ranking Member of the Senate Finance Committee; and Senators Chris Van Hollen (D-Md.) and Jack Reed (D-RI), members of the Senate Banking Committee, and Senator Cory Booker (D-N.J.) questioned the Office of the Comptroller of the Currency (OCC) and the Federal Reserve (the Fed) on how these independent agencies will retain their credibility and integrity and mitigate the extraordinary conflicts of interest and unprecedented risks to our financial system posed by President Trump’s and the Trump family’s stablecoin, “USD1.” 

The launch of USD1 comes as the President tries to strip financial regulators of their independence and Congress simultaneously considers the GENIUS Act – legislation that would task the OCC and the Fed with regulating, supervising, and enforcing the law for stablecoins, including USD1. However, the current version of the GENIUS Act has no guardrails to prevent the President from blocking actions that would reduce the profitability of his stablecoin project or directing financial regulators to take actions that are favorable to him and his family. 

The senators laid out specific concerns about actions the President could take to overrule or pressure the Fed and OCC and benefit his own financial company, World Liberty Financial (WLF), the issuer of USD1:

  • The President could review any actions the OCC takes with regard to USD1’s stablecoin application. 
  • The President would be positioned to intervene in and deny the OCC from promulgating stablecoin safeguards or force the agency to refrain from initiating any enforcement actions against WLF.
  • In a period of stress, the President could attempt to direct the Fed to establish an emergency liquidity facility to backstop stablecoins, including USD1.
  • The President could attempt to direct the Fed to establish a master account at the central bank for WLF.
  • The President could intervene to deny such assistance to USD1’s competitors.

The senators called on the OCC and the Fed to explain how they will mitigate any future risks posed by USD1, while withstanding political pressure from the President, including whether the agencies have controls in place to avoid undue political influence from the White House on regulatory, supervisory, or enforcement matters.

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