According to Cointelegraph, Eric Trump, son of U.S. President Donald Trump and a businessman involved in several cryptocurrency ventures, has expressed his belief that stablecoins could play a crucial role in maintaining the strength of the U.S. dollar. In a recent interview with The New York Post, Eric Trump emphasized his conviction that stablecoins will "save the US dollar." He specifically mentioned USD1, a stablecoin linked to the Trump family's crypto initiative, World Liberty Financial, which has faced scrutiny in Washington.
The unveiling of World Liberty Financial's plans in late March sparked concerns about potential conflicts of interest. Attorney Andrew Rossow previously described the stablecoin as "a direct affront to constitutional safeguards meant to prevent conflicts of interest." In April, U.S. Representative Maxine Waters, a senior member of the House Financial Services Committee, suggested that President Trump might be aiming to replace the U.S. dollar with his stablecoin. Waters speculated that Trump could envision stablecoins being used for various government payments, including those from the Department of Housing and Urban Development, Social Security, and tax payments.
Concerns about conflicts of interest have been echoed by five Democratic senators who, in a March letter, warned that a sitting president's direct financial involvement in a stablecoin posed "unprecedented risks to our financial system." In response to these concerns, the Trump administration advanced U.S. stablecoin regulation through the GENIUS Act, which President Trump signed into law on July 18. Despite this regulatory move, critics noted that the President's personal wealth had increased by approximately $2.4 billion from his crypto-related ventures since 2022.
In early August, U.S. Senator Elizabeth Warren, along with Senators Chris Van Hollen and Ron Wyden, addressed a letter to the Office of the Comptroller of the Currency, expressing concerns over potential conflicts of interest involving the Trump family's crypto business interests. The letter highlighted that the new stablecoin law did not prevent President Trump, his family, or affiliates from financially benefiting from stablecoin issuance and transactions.
The debate over stablecoins' impact on the U.S. dollar continues, with Eric Trump not being the first to suggest their potential to reinforce the dollar's dominance. Federal Reserve Bank Governor Christopher Waller has previously supported stablecoin adoption, arguing that it could enhance the dollar's global reach and reserve currency status. However, some, like European asset manager Amundi, have warned that new stablecoin regulations might threaten the long-term dominance of the U.S. dollar.
