Main Points：
- Accusations of Self-Dealing: Representative Maxine Waters, the leading Democrat on the House Financial Services Committee, sharply criticized President Donald Trump during a committee hearing on April 2 for allegedly trying to replace the U.S. dollar with a stablecoin supported by his family.
- Specific Scheme Named: Waters pointed to the issuance of the stablecoin “USD1” by World Liberty Financial (WLFI), a company backed by the Trump family, as an example of a dangerous precedent where a president uses his position for personal financial gain.
- Broader Criticism: She also referenced Trump’s earlier actions, including the issuance of his meme coin, proposals for a national crypto reserve, and his own stablecoin initiative, arguing that these moves undermine the integrity of U.S. financial policy.
- Calls for Strict Rules: Waters warned that unless there are strict limits preventing a U.S. president and his close associates from owning and promoting their own stablecoin business, such practices cannot be condoned by lawmakers.
- Complex Regulatory Environment: Committee Chair French Hill noted that Trump’s family’s involvement in the crypto industry complicates the regulatory landscape, urging that any leniency in this area must be avoided to protect consumers and maintain fair market rules.
1. Allegations of Self-Dealing in Crypto
During the opening remarks at the House Financial Services Committee on April 2, Representative Maxine Waters (California) launched a scathing critique of President Donald Trump. She accused him of leveraging his political influence to profit from multiple schemes in the cryptocurrency industry, including initiatives that would have the government adopt a stablecoin supported by his family.
2. Criticism of Trump’s Stablecoin Initiative
Waters specifically singled out the stablecoin “USD1,” issued by World Liberty Financial (WLFI) in March, which is backed by Trump’s family. She argued that by promoting his own coin as a replacement for the dollar in various government functions—from housing payments to tax collections—Trump is setting a dangerous precedent that could compromise the integrity of the financial system. “If the president and his cronies are allowed to create rules for their own profit, then I cannot support this bill,” she stated.
3. Broader Political and Regulatory Concerns
Waters’ remarks were part of a broader criticism that extends beyond her own comments. Committee Chair French Hill noted that the Trump family’s involvement in the crypto space has added layers of complexity to current regulatory efforts. Additionally, the bill known as the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE Act) was introduced to ensure consumer protection and secure transparency within the stablecoin market, though it did not directly address Trump’s initiatives.
4. The Need for Strong Federal Oversight
As debates continue over the role of stablecoins in the financial system, Representative Waters and other lawmakers warn that any attempt by a U.S. president to substitute the dollar with his own stablecoin would set an alarming precedent. With the potential for conflicts of interest and regulatory manipulation, strict rules and robust federal oversight are essential. Lawmakers are calling on all committee members to reject any notion that permits such self-dealing practices, ensuring that financial policies remain impartial and protect the interests of all citizens.
