US Treasury Secretary Scott Bessent faced tough questioning from the House Financial Services Committee regarding World Liberty Financial (WLFI) and its new USD1 stablecoin. Congressional Democrats raised concerns about potential hidden subsidies in the no-interest stablecoins associated with Trump's crypto ventures. WLFI, established in 2024 with close ties to the Trump family, garnered $550 million in funding by selling its governance token. The launch of USD1, a dollar-pegged token by WLFI, received a $2 billion deployment from Abu Dhabi's MGX, propelling it to a top stablecoin by market cap. Lawmakers highlighted the $80 million annual subsidy WLFI and Trump owners could receive from the deal. Calls were made for transparency in stablecoin deals to prevent conflicts of interest and ensure regulatory oversight. The scrutiny follows a New York Times report revealing potential conflicts and policy shifts benefiting WLFI under the Trump name. Read more AI-generated news on: https://app.chaingpt.org/news