Trump Coin Plan Causes Fight Over Digital Money Rules
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Democrats’ opposition to the Trump family’s new stablecoin venture could potentially derail pending legislation aimed at regulating digital assets.
The announcement by World Liberty Financial, a cryptocurrency venture co-founded by former President Donald Trump, to launch USD1, a dollar-pegged stablecoin, has sparked controversy among Democratic lawmakers. The timing of this announcement has created complications for bipartisan stablecoin legislation currently under consideration in both chambers of Congress.
Despite having Republican-led bills in both the House and Senate, Democratic support remains crucial for passage. Sen. Cynthia Lummis, R-Wyo., acknowledged the potential complications, telling Politico, “It [USD1] shouldn’t make life harder, but it might.”
The Trump family's World Liberty Financial plans to introduce USD1.
A stablecoin backed by U.S. treasuries, aiming to provide a reliable digital currency for cross-border transactions.
Will this be the gamechanger? pic.twitter.com/36Dji6q2Ot
— benjif (@Benjif0x) March 31, 2025
The stablecoin legislation, which would mark Congress’s first major cryptocurrency reform, has garnered support from at least three House Democrats. However, Rep. Maxine Waters, D-Calif., the ranking Democrat on the Financial Services panel, is expected to oppose the bill unless it includes provisions preventing Trump and Elon Musk from issuing stablecoins.
House Financial Services Republicans remain committed to moving forward, with spokesperson Brooke Nethercott stating, “If we want clear standards in this market, the status quo is not the answer. Several members on both sides of the aisle have been working to provide clear regulatory guidelines to allow payment stablecoins to flourish in the United States.”
Democratic concerns have intensified, with Rep. Jim Himes, D-Conn., expressing worry about the impact on bipartisan cooperation, telling Politico, “I can’t think of anything quite so damaging to bipartisanship than that happening.”
World Liberty Financial, a crypto project backed by President Trump and his family, says it will launch a new stablecoin backed by U.S. government debt https://t.co/tyOOHu1Ia0
— The Wall Street Journal (@WSJ) March 25, 2025
In a significant move, Senator Elizabeth Warren, D-Mass., along with four other Democratic senators, has raised regulatory concerns by sending a letter to the Office of the Comptroller of the Currency and the Federal Reserve. The letter questions how these agencies plan to regulate World Liberty Financial and its stablecoin.
World Liberty Financial, launched last year, emerged from a collaboration between Trump, his sons, and the Witkoffs – Zach Witkoff and his father Steve, who previously served as Trump’s special diplomatic envoy.
