US Senators Question Fed and OCC Over Trump’s Regulating Own Stablecoin
A growing number of US senators are questioning the Federal Reserve (the Fed) and Office of the Comptroller of the Currency (OCC) about the risks posed by President Donald Trump’s stablecoin, “USD1.” The launch of USD1 comes as Congress considers the GENIUS Act, which would regulate and supervise stablecoins.
Senators Elizabeth Warren, Ron Wyden, Chris Van Hollen, and Jack Reed expressed concerns that President Trump could use his powers to pressure or overrule regulatory actions against his own financial company, World Liberty Financial (WLF), the issuer of USD1. The senators cited specific risks, including:
* The President reviewing and potentially blocking OCC actions related to USD1’s stablecoin application.
* The President directing the Fed to establish emergency liquidity facilities or master accounts for WLF.
* The President intervening in enforcement actions against competitors.
The senators called on the OCC and Fed to explain how they will mitigate future risks posed by USD1, including the potential impact of political pressure from the White House.
Source: https://www.banking.senate.gov/newsroom/minority/warren-wyden-van-hollen-colleagues-question-fed-and-occ-on-serious-risks-posed-by-donald-trump-regulating-his-own-stablecoin