Warren, together with senators, Chris Van Hollen and Ron Wyden, sent a letter to the head of the monetary control department (OCC) Jonathan Guld, demanding comments about the possible conflict of Trump’s interests. The president is more and more involved in the cryptocurrency industry, and this poses a threat to the US financial security, the authors of the letter are sure.
The senator is very concerned about USD1 stablecoin, launched in March 2024 by the World Liberty Financial family company Trump. The market capitalization of token reached $ 2.17 billion, and now it takes seventh place in the ranking of stablecoins, ahead of the tokens of PayPal (Pyusd) and Ripple (Rlusd). The letter mentions a spring transaction for $ 2 billion, in the framework of which the company from the UAE MGX has acquired a share in the largest cryptocurrency in the world of Binance using USD1 stablecoins. The authors of the letter called this deal corruption and violating US legislation on the fight against money laundering.
According to the senators, the situation is complicated by the recent appearance of the law on regulating the release and circulation of Genius stabelcoins, according to which the coins will regulate OCC. Senators argue that the law will allow Trump and his family to make a profit from crypto assets without any checks, not bearing responsibility for this.
Warren asked Gulda to answer the questions: can the president remove him from his post at will and will he be ready to resign with the provision of a report to Congress if he is subjected to unjustified political pressure? Senators also demanded Gold to inform whether the OCC was going to investigate the activities of competitors of World Liberty Financial. The department has time to provide an official response until August 14.
Recently, Warren criticized the Genius law, saying that he would lead the country to a financial crisis, similar to happening in 2008. According to the parliamentarian, Genius creates a false idea of the safety of stablecoins.
Source: Bits
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