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The role of President Trump in the stablecoin USD1 raises regulatory questions
A group of U.S. senators, led by Elizabeth Warren, expressed their concerns about President Trump's reported connections to the upcoming stablecoin USD1.
They argue that Trump's reported ties to the project could allow him to influence federal regulators, including the Federal Reserve and OCC, in favor of the asset.
Senators requested that the Federal Reserve and the Office of the Comptroller of the Currency clarify how they plan to manage such risks, especially with the lack of safeguards in the GENIUS Act.
A group led by Warren points to the risks of presidential interference in approving USD1
On March 28, a group of lawmakers led by Senator Elizabeth Warren sent a letter to the Federal Reserve and the Office of the Comptroller of the Currency (OCC).
They requested that both agencies clarify how they plan to maintain regulatory integrity regarding the upcoming stablecoin USD1.
The request comes as Congress considers the GENIUS Act, a bill that grants the Federal Reserve and OCC broad authority over the regulation of stablecoins.
"The President of the United States could sign legislation that facilitates the launch of his own product and then retain the power to regulate his own financial company," they noted.