Can Stablecoins “save US dollars”? Eric Trump says yes. He told the New York Post that stubcoins can maintain the strength of the dollar and protect our reach.
Trump highlighted USD1, a stablecoin tied to World Liberty Financial (WLFI). He linked stubcoin to US dollars in practical payments and settlements. He also defended the family’s crypto venture during the interview.
Currently, the Stablecoins discussion includes policy, compliance and market design. It also focuses on how Stablecoins, such as Stablecoin, interact with the US dollar on regulated channels. Comments have led Eric Trump and the WLFI into the regulatory spotlight.
World Liberty Financial, USD1, and conflict of interest
World Liberty Financial (WLFI) used USD1 as a Stablecoin in late March. Shortly afterwards, conflicts of interest emerged over the project’s relationship with the Trump family. The question focused on the proximity of the president’s tokens that won the dollar.
In April, president Maxine Waters, a ranking member of the House Financial Services Committee, escalated the warning. She said Donald Trump might push government payments into stubcoin. She said, “And do you think Trump will replace the dollar with the dollar? His own coin is of course.” Five Democrat senators have regularly called the president’s direct interests a “unprecedented” risk to the financial system, following in March.
Genius Law and Stubcoin Regulations in the US
On July 18th, President Donald Trump signed the Genius Act. The law has increased stubcoin regulations in the United States. It placed stubcoins and US dollars under a clearer domestic framework.
Critics then pointed to the estimated benefits from the family’s crypto venture. By August, external estimates have led to the president’s personal property growth of about $2.4 billion since 2022. These figures, along with the new Stablecoin Regulation Pus, updated conflict of interest concerns regarding USD1 and WLFI.
In early August, Sen. Elizabeth Warren, along with Sens. Chris Van Hollen and Ron Wyden, sent a letter to the office of the Secretary of the Currency (OCC). They write: “In particular, this bill will not do anything to prevent President Trump, his family, or his affiliates from financially benefiting from the issuance and sale of stubcoins and use in transactions,” the letter was forced upon regulators on stubcoins, US dollar policy, and safeguards.
Will Stablecoins strengthen the US dollar? Mixed View
Support for stubcoin as a US dollar tool exists within the Federal Reserve. In February, Federal Reserve Governor Christopher Waller said he was supporting adoption. He argued that stubcoin “will widen the dollar range around the world and make it even more reserve currency than it is now.”
Industry voices reflected this position. In April, Bryan Pellegrino, founder and CEO of Layerzero Labs, said Stablecoins would help the US dollar maintain its global advantage. He called them “the last Trojan or vampire attack on all other currencies in the world.” His lines emphasized reach.
However, not all ratings are consistent. In early July, asset manager Amundi suggested that more friendly stubcoin regulations could also create long-term challenges for controlling the US dollar. Similarly, European policy advisors warn that slowly fragmented rules could shift power to dollar-based stubcoins unless the region sets a common standard.