Warren Demands OCC Probe Trump Family's Stablecoin Ties and Conflict of Interest

U.S. Senator Elizabeth Warren, joined by Senators Chris Van Hollen and Ron Wyden, has demanded that the Office of the Comptroller of the Currency (OCC) investigate potential conflicts of interest tied to the Trump family’s cryptocurrency ventures. In a letter sent to OCC head Jonathan Gould, the senators raised concerns over how the agency would prevent the Trump family’s financial interests from influencing the regulatory framework for stablecoins, particularly after the enactment of the GENIUS Act, which expanded the OCC’s authority in this area [1]. The letter criticizes the current legislative structure for failing to block the Trump family from profiting from stablecoin operations [1].

The inquiry centers on USD1, a stablecoin launched in March 2024 by World Liberty Financial, a platform associated with the Trump family [1]. The senators argue that Trump’s personal financial interests are closely linked to the success of USD1, creating an “unprecedented conflict of interest” that could compromise the integrity of the financial system [1]. This concern is amplified by a $2 billion deal involving an Emirati firm, MGX, and Binance, which reportedly used USD1 to facilitate the transaction [1]. Binance, which pleaded guilty to U.S. anti-money laundering violations in 2023, is also said to have contributed to the development of USD1’s code [1].

Warren and her colleagues further questioned Gould about the agency’s independence and whether he would resign if pressured by the administration to prioritize the Trump family’s financial interests over public accountability [1]. The letter also urged the OCC to investigate potential conflicts among World Liberty’s competitors and requested a response by August 14 [1].

USD1 currently ranks as the seventh-largest stablecoin globally, with a market capitalization of $2.17 billion, surpassing offerings from major financial institutions like PayPal and Ripple [1]. Meanwhile, Trump’s broader cryptocurrency investments are estimated to have increased in value by at least $620 million in recent months [1]. According to the Bloomberg Billionaires Index, Trump’s fortune includes $2.2 billion in TMTG stock, a firm linked to his cryptocurrency ventures [1].

Industry observers have also raised concerns about the potential for political influence over financial markets. Nick Carter, a Trump supporter and general partner at Castle Island Ventures, noted the challenges of managing conflicts between political power and business interests [1]. The situation is further complicated by the fact that nearly 70 Trump administration officials and nominees have disclosed cryptocurrency holdings or investments in blockchain-related companies, with assets ranging from small amounts to over $120 million [1].

Sources:

[1] [Senator Warren Presses US Banking Regulator Over Trump Family’s Crypto Business Links](https://cryptonews.com/news/senator-warren-presses-us-banking-regulator-over-trump-familys-crypto-business-links/)