US Senator questions the regulatory risks brought by Trump's WLFI launching USD1 stablecoin
Golden Finance reports, according to Cointelegraph, five Democratic senators have written to the Federal Reserve and OCC questioning the "unprecedented risks" brought by the USD1 stablecoin launched by World Liberty Financial (WLFI), which is supported by the Trump family. The letter points out that Trump weakened regulatory independence through an executive order in February and holds 60% of WLFI's shares, constituting a significant conflict of interest. Since its establishment in September 2024, WLFI has raised $550 million through two token sales and launched USD1 on BNB chain and Ethereum on March 24th. This move coincides with Congress reviewing the GENIUS Act, which may grant regulatory authority to OCC and Federal Reserve, raising concerns about financial system stability.
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