Lawmaker Claims Trump Aims to Replace US Dollar with His Stablecoin

• Trump’s role in WLFI and its stablecoin USD1 raises alarms about political influence over U.S. monetary systems.

• As regulatory pressure builds, BTC reacts with caution, reflecting market unease amid growing government-crypto friction.

With the growing spotlight on the Trump family’s expanding presence in the cryptocurrency space—most notably through Bitcoin mining and stablecoin ventures as CNF previously reported—new concerns have emerged over potential conflicts of interest and broader implications for U.S. monetary policy.

This attention intensifies in light of President Donald Trump’s ties to World Liberty Financial (WLFI) and its upcoming USD1 stablecoin launch.

Trump’s Crypto Ventures Under Scrutiny

California Representative Maxine Waters, ranking member of the House Financial Services Committee, has publicly raised concerns about Trump’s deepening ties with the crypto sector.

Her primary concern centers on World Liberty Financial’s ambitions and Trump’s role as “chief crypto advocate”, with his son Barron Trump positioned as the firm’s “DeFi visionary.”

Legislative Efforts to Address Stablecoin Conflicts

In response, Waters has introduced a draft bill aimed at regulating stablecoin issuers in the U.S. The proposal mandates one-to-one reserve backing (such as U.S. dollars or Treasury securities) and places issuers under the supervision of the Federal Reserve.

This bill seeks to address emerging risks to financial stability, ensure transparency, and offer consumer protections. A tweet from WhaleFUD adds to the discussion:

JUST IN:

Lawmaker alleges Trump wants to replace US dollar with his stablecoin

— WF (@WhaleFUD) April 2, 2025

World Liberty Financial’s Stablecoin Ambitions

WLFI has confirmed that its USD1 stablecoin will be fully backed by U.S. government securities and cash, with BitGoas the custody provider.

Co-founder Zach Witkoff stated that USD1 aims to bridge the security of traditional finance with the innovation of DeFi, offering a trustworthy alternative in digital dollars.

Democratic Lawmakers Push for Oversight

Top Democrats, including Senator Elizabeth Warren and Rep. Maxine Waters, have called on the SEC to preserve all documents related to President Trump’s cryptocurrency dealings.

This move further signals an intent to scrutinize the political and financial ramifications of Trump-linked digital asset projects.

Bitcoin Market Reacts Amid Regulatory Heat

As CNF previously reported, Trump recently called Bitcoin “the greatest store of value” and a hedge against real estate. Against this backdrop of political tension, Bitcoin (BTC) has experienced notable volatility.

As of now, Bitcoin is trading at approximately $83,730, down 1.51% over the past 24 hours and 4.32% over the past week, illustrating the crypto market’s sensitivity to political and macroeconomic signals.