In a recent letter to the Federal Reserve and the Office of the Comptroller of the Currency, five Democratic senators have raised concerns about the potential conflicts of interest surrounding a stablecoin launched by World Liberty Financial (WLFI), a crypto firm backed by US President Donald Trump’s family.

The letter, signed by Massachusetts Senator Elizabeth Warren and four other Democrats, highlights the need for regulatory agencies to carefully consider the risks posed by WLFI and its stablecoin, USD1. This comes as Congress is currently considering legislation to regulate stablecoins through the GENIUS Act, which would give the OCC and Federal Reserve oversight over stablecoin issuers like WLFI.

However, the senators also point out the potential conflict of interest arising from President Trump’s involvement in the venture. As the project’s website states, Trump and his family members control 60% of the company’s equity interests. This raises concerns about the president’s financial gain from the success of the stablecoin, especially as he has recently signed an executive order giving himself unprecedented control over federal agencies.

The launch of a stablecoin tied to a sitting president presents unprecedented risks to the financial system and the integrity of decisions made by the Fed and OCC. This is a concern that must be addressed and carefully considered by regulatory agencies.

Since its launch in 2024, WLFI has raised $550 million through two public token sales and recently confirmed the launch of its first stablecoin on the BNB Chain and Ethereum. The president’s son, Donald Trump Jr., has also been actively promoting the project, raising further questions about potential conflicts of interest and insider trading.

As the project continues to gain attention and funding, it is crucial for regulatory agencies to closely monitor and address any potential conflicts of interest. The integrity of the financial system and the trust of investors are at stake, and it is the responsibility of regulatory agencies to ensure fair and ethical practices in the crypto industry.