In a brand new letter, a trio of Senate Democrats has pressed the brand new head of the Office of the Comptroller of the Currency (OCC) concerning the US President’s crypto ventures and a possible battle of curiosity associated to the Trump household’s stablecoin, USD1.
Senators Question Banking Regulator
On Thursday, three Democratic senators despatched a letter to newly confirmed Comptroller of the Currency Jonathan Gould following the current signing into legislation of the extremely anticipated stablecoin framework. Senators Elizabeth Warren, Chris Van Hollen, and Ron Wyden pressed the OCC’s chief concerning his stance on a number of crypto-related subjects.
We request data on the steps you’ll take as Comptroller to make sure that President Trump’s monetary conflicts of curiosity don’t affect the Office of the Comptroller of the Currency’s (OCC) efforts to make sure the security and soundness of our banking system – together with its efforts to supervise the fee stablecoin market pursuant to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
As acknowledged within the letter, the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act now establishes the OCC as the first regulator of federally licensed stablecoin issuers, making the company liable for approving functions, promulgating guidelines, supervising issuers, and initiating enforcement actions for violations of the legislation.
Excerpt from Senate Democrats' letter to Comptroller Gould. Source: Law360
Therefore, “the OCC could quickly be within the place the place it has to overview a stablecoin issuer software submitted by an organization instantly tied to President Trump and his household and to draft rules that clearly affect the President’s funds.”
To the Senators, the GENIUS Act “does nothing to forestall” President Trump, his household, or his associates from “financially benefiting from the issuance and sale of stablecoins and their use in transactions,” which has been an rising concern for Senate Democrats this 12 months.
In June, Democratic lawmakers proposed a invoice to forestall crypto-related conflicts of curiosity. As reported by Bitcoinist, Senator Adam Schiff launched the Curbing Officials’ Income and Nondisclosure (COIN) Act to ban the president, vice chairman, and their speedy household from entering into any crypto enterprise whereas in workplace.
Trump Family’s Crypto Conflicts
Discussing the potential conflicts of curiosity, the letter famous that President Trump’s crypto enterprise, World Liberty Financial (WLFI), launched the USD1 stablecoin in March 2025, simply as Congress started to guage associated laws.
The senators defined that “the launch of a stablecoin instantly tied to a sitting President who stands to profit financially from the stablecoin’s success is itself an unprecedented battle of curiosity presenting vital threats to our monetary system,” arguing that Trump’s conflicts of curiosity are “not theoretical.”
They highlighted the $2 billion deal between WLFI and the Emirati agency MGX, alleging that the President has marketed a “staggering mannequin for corruption” by utilizing USD1 to finance enterprise between “a international government-backed entity (MGX) and a international company that pleaded responsible to felony violations of U.S. anti-money laundering and sanctions legal guidelines (Binance).”
In different phrases, President Trump and his household’s private wealth is intricately tied to the success of USD1 and WLF’s different cryptocurrency ventures; President Trump, in the meantime, has the facility to instantly affect the nation’s cryptocurrency coverage to his monetary profit.
As a outcome, they requested that Comptroller Gould reply some essential questions by August 14. Among the inquiries, the senators requested him if he believes President Trump might take away him “at his pleasure” and if the banking regulator will submit any vital rulemakings to the White House for overview.
They additionally requested whether or not the OCC chief would resign and supply proof to Congress if he was pressured to profit WLFI or hurt its opponents.
Bitcoin (BTC) trades at $115,260 within the one-week chart. Source: BTCUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering totally researched, correct, and unbiased content material. We uphold strict sourcing requirements, and every web page undergoes diligent overview by our group of high expertise consultants and seasoned editors. This course of ensures the integrity, relevance, and worth of our content material for our readers.
