Democratic Senator Moves to Block Trump from Profiting Off Stablecoin USD1
Democratic Senator Jeff Merkley has introduced efforts to block former President Donald Trump from earning income via stablecoin transactions, raising serious concerns over potential corruption and abuse of influence.
At the centre of the controversy is a stablecoin known as USD1, reportedly launched by World Liberty Financial (WLFI)—a company allegedly connected to Trump’s family circle. The digital currency, pegged to the US dollar, has sparked criticism from Merkley and other lawmakers who argue that the stablecoin could be misused as a financial tool for political leverage.
“Passing the GENIUS Act without anti-corruption amendments gives Congress’ stamp of approval to Trump selling access and influence to the highest bidder,” Merkley wrote on X (formerly Twitter).
Merkley’s remarks refer to the GENIUS Act, a proposed bill aimed at regulating stablecoins in the US. While the bill is widely seen as a necessary step in the evolving digital finance space, Merkley fears it could also open the door to unchecked influence by powerful figures—particularly those in or connected to government positions.
The senator has called for an amendment to explicitly ban sitting or former presidents from profiting directly or indirectly from stablecoin projects, citing ethical concerns and national security implications.
In a related development, David Sacks, a White House advisor on AI and crypto policy, has endorsed the potential of stablecoin legislation, stating that the US could see “trillions in inflows” if the legal framework is made clear and attractive. According to Sacks, strong regulatory clarity would have a positive short-term impact on US bonds and overall financial markets.
Still, critics remain divided on whether the potential benefits of stablecoins outweigh the risks of misuse by high-profile political figures.
The USD1 case has now become a lightning rod for broader debates around crypto regulation, ethics, and the growing intersection between politics and decentralised finance.
As the bill moves through Congress, all eyes will be on whether lawmakers choose to include the necessary guardrails to prevent abuse—or risk letting political power mix dangerously with crypto finance.
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