Trump accused of pushing USD1 as legal tender with new financial legislation
Trump accused of pushing USD1 as legal tender
President Donald Trump is under scrutiny following accusations from Representative Maxine Waters that he is leveraging his office to promote a stablecoin launched by a company linked to his family.
During a House Financial Services Committee hearing on Tuesday, Waters claimed that Trump intends to push the government toward using the USD1 token—issued in March by World Liberty Financial—as a replacement for the U.S. dollar in federal transactions, according to the Cryptopolitan.
The allegations come amid ongoing debates around the STABLE Act and related cryptocurrency legislation. Waters, the committee’s ranking Democrat, warned that the proposed stablecoin framework could open the door to self-enrichment and regulatory capture.
Concerns over crypto influence in government policy
“Trump likely wants the entire government to use stablecoins—from Social Security payments to taxes,” Waters said. “And which coin do you think Trump would replace the dollar with? His own, of course.”
The USD1 token follows Trump’s earlier foray into digital currency with a meme coin released in January. While neither token is formally endorsed by the federal government, Waters said their timing and promotion raise ethical red flags.
On the same day, crypto companies Circle and Ripple announced significant expansions. Circle filed for a public listing on the NYSE, while Ripple launched RLUSD within its global payments network. Industry leaders, including former Binance CEO Changpeng Zhao, dubbed the surge in activity a “stablecoin war.”
As lawmakers prepare to vote on new digital currency rules, the intersection of politics and crypto continues to draw bipartisan concern. No formal response has been issued by the Trump administration regarding the USD1 token or its potential role in federal financial systems.
After his 2024 re-election, President Trump deepened his involvement in cryptocurrency. His family’s 60% stake in World Liberty Financial has drawn both support and criticism.
