In 2025, the stablecoin project USD1 led by the family of former US President Donald Trump attracted global attention. Behind this seemingly ordinary financial innovation lies a complex chess game of political power, family interests, and the continuation of dollar hegemony.

I. Policy paving the way: Trump clears the way for family businesses

The Trump administration has paved the way for private institutions to issue dollar stablecoins through the (Stablecoin Act) and (GENIUS Act), while prohibiting the Federal Reserve from issuing central bank digital currency (CBDC). This policy bias is said to pave the way for the family business World Liberty Financial (WLFI) — which is 60% owned by Trump and enjoys 75% of the revenue share from the stablecoin project. By legislating stablecoins into the regulatory framework, Trump not only avoids the limitations of the traditional financial system but also gives his stablecoin 'legitimate endorsement.'


II. Business closed loop: The complete chain from issuing coins to harvesting profits

Issuing side: The USD1 stablecoin issued by WLFI is pegged to the dollar and US Treasuries, with reserve assets including US short-term government bonds and cash. This design brings global capital into the US Treasury market, alleviating the $36 trillion debt pressure on the US while providing income for the Trump family.

Trading side: Partnering with exchanges like Binance and Crypto.com, controlling traffic entry through holdings or stakes, forming a 'coin issuance - trading - arbitrage' closed loop. The Trump family even plans to launch an ETF to further attract retail funds.


Harvesting side: Trump previously manipulated the market by issuing the meme coin $TRUMP, with its market value soaring from $13.55 to $174.6, earning over 10 times in the short term. The launch of the USD1 stablecoin is seen as a more advanced 'legal harvesting tool.'

III. Rent-seeking power: The gray trade of political and capital interests conflicts:

As the current president, Trump’s family business directly participates in the issuance of stablecoins, suspected of violating the (Federal Anti-Corruption Act). Democratic lawmakers have openly questioned his use of policy for family profit.

Regulatory capture: If WLFI's stablecoin issuance passes review, it may become a model for 'regulatory arbitrage.' Although the US SEC claims to strengthen scrutiny, officials appointed by Trump may give it a green light.

  • Global harvesting: Stablecoins are criticized as 'new dollar hegemony tools,' attracting global gray funds by pegging to US Treasuries, shifting debt pressure onto cryptocurrency market participants, and even threatening the financial stability of other countries.

    IV. Risks and controversies: A high-risk political gamble

Systemic risk: If stablecoins face a run or reserve assets depreciate (such as a sell-off of US Treasuries), it may trigger a chain reaction, impacting the traditional financial system.

  • Trust crisis: In the token sale of the Trump family business WLFI, $390 million directly flowed into the family account, criticized as a 'political donation channel.'

    International countermeasures: The EU is accelerating the promotion of the digital euro, China is strengthening its layout of the digital yuan, and the world is trying to break the dollar's 'digital colonialism' through stablecoins.

    Conspiracy or overt strategy?

  • Trump's stablecoin plan is both an extension of political power and a reflection of capital greed. It takes advantage of regulatory gaps, policy biases, and market manipulation to construct a secret system of 'issuing coins is like printing money.' When the boundaries between politics and business become completely blurred, ordinary people may have already become chips in this high-stakes gamble. As crypto analysts put it: 'This is not financial innovation, but a carefully designed wealth extraction experiment.'