- Democrats seek ban on presidential profits from stablecoin ventures tied to Trump.
- $2B USD1 deal triggers probe into Trump family’s crypto-linked financial interests.
- Secret dinner with memecoin buyers sparks backlash over pay-for-access allegations.
The U.S. Democratic senators are advancing new legislation to block U.S. presidents from profiting off stablecoin ventures, citing direct financial ties between President Donald Trump and a recently launched cryptocurrency platform.
The move follows reports that Trump and his sons are behind World Liberty Financial (WLFI), the issuer of the USD1 stablecoin. This raises conflict-of-interest concerns among lawmakers pushing for greater digital asset transparency.
On May 20, the U.S. Senate voted to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which seeks to establish a foundation for stablecoin regulation. Eighteen Democrats joined Republicans to move the bill forward. Now, top Senate Democrats are pushing to attach a critical amendment.
Senate Minority Leader Chuck Schumer and Senators Elizabeth Warren and Jeff Merkley propose a provision prohibiting any U.S. president from earning money through stablecoin-linked ventures. According to Senator Merkley, allowing the bill to pass without the amendment would send the wrong message. He said it would suggest that Congress supports “selling influence and access to those who can pay the most.”
The amendment targets Trump’s involvement in WLFI, which launched its USD1 stablecoin in March. Public records and reports indicate that Trump and his sons, Eric Trump, Donald Trump Jr., and Barron Trump, hold leadership roles in the platform. WLFI lists Barron as its “DeFi visionary,” Eric and Donald Jr. actively manage the company’s operations.
Foreign Investment Raises More Red Flags
Concerns over WLFI’s operations intensified after reports emerged of a $2 billion transaction involving USD1. According to lawmakers, the stablecoin was used by an investment firm in Abu Dhabi to settle the deal on Binance, generating transaction fees that could benefit the Trump family.
However, Senators have called for a formal investigation into Trump’s financial interests, which are tied to WLFI. Critics warn that without regulatory safeguards, the U.S. president could profit from legislative outcomes that support the recognition of USD1 as a financial instrument in the United States.
In response, WLFI co-founder Zach Witkoff dismissed the backlash, saying that public concerns have been exaggerated and misrepresented.
Private Dinner With Token Buyers Sparks Backlash
Further scrutiny followed reports of a private dinner hosted by Trump for investors in a personal memecoin. The event was held at one of Trump’s golf clubs and allegedly included up to 220 attendees. Some of those attendees had publicly declared owning wallets linked to the token. Among the guests was Chinese crypto entrepreneur Justin Sun.
Senator Chris Murphy described the event as “a private, secret dinner” where investors allegedly purchased access to Trump through token investments. He accused the former president of enabling a pay-to-play environment that could influence national policy.
Additionally, Senators Warren, Merkley, and Murphy held a press conference demanding the release of the guest list. Public Citizen and Our Revolution representatives joined them and staged a protest at the venue.
