Eric Trump’s USD1 Stablecoin Fuels Dollar Regulation Clash
Eric Trump has promoted USD1, the stablecoin issued by World Liberty Financial, as a tool to “save the US dollar”. The stablecoin launch has drawn conflict of interest concerns from Representative Maxine Waters and Senators Elizabeth Warren, Chris Van Hollen and Ron Wyden. In July, President Trump signed the GENIUS Act, establishing a new framework for stablecoin regulation but critics say it fails to prevent presidential profit. Proponents like Federal Reserve Governor Christopher Waller and LayerZero Labs CEO Bryan Pellegrino argue that regulated stablecoin adoption will strengthen the dollar’s global reserve status. Asset manager Amundi and European advisors warn that lax or fragmented rules may challenge long-term dollar dominance. Traders should watch how US stablecoin policy evolves, as regulatory shifts could trigger market volatility and shape dollar-backed token demand.
Bearish
Regulatory scrutiny and conflict-of-interest concerns over the USD1 stablecoin create immediate uncertainty for traders. In the short term, heightened oversight and potential legal challenges could curtail market liquidity and weigh on token demand. Over the long term, a clearer GENIUS Act framework may bolster confidence, but unresolved profit risks and fragmented international rules suggest limited upside. Overall, the news is likely to dampen bullish sentiment until regulatory clarity is achieved.