The move of Donald Trump-backed World Liberty Financial to launch its stablecoin; USD1 has hugely influenced discussion relating to cryptocurrency regulation in the United States of America. Most significantly, the Stable Act that aims to enhance stablecoin regulation in the country is enduring serious scrutiny from regulators.
Following the introduction of the bill to the House in February 2025, crypto enthusiasts were optimistic that the new legislation is a broader reflection of how the US regulatory landscape has changed in the last few months. Further, the bill emphasized key components like consumer protection and transparency, creating guidelines for US dollar-pegged stablecoins.
Similarly, the Act focuses on outlining standards for stablecoin issuers and ensuring full compliance with the US Anti-Money Laundering laws. Before the launching of the USD1 token, the Stablecoin Act enjoyed both the support of the Republicans and the Democrats, making it a bipartisan bill.
More so, Trump urged lawmakers to approve the bill before their recess in August, a target that looks unachievable at the moment.
Early opposition against the bill
In March 2025, WLFI announced plans to launch a stablecoin pegged to the USD at a ratio of 1:1, with backing by valuables including cash equivalent in US dollars.
With the announcement, the stablecoin act is now enduring serious setbacks as legislators are indicating potential conflicts of interest due to Trump’s family involvement in crypto. In a recent hearing, California Representative Maxine Walters, a ranking member of the US House Financial Services Committee accused Trump of using his position as the president to make money from various crypto schemes.Â
In her narration, the lawmaker discussed how Donald Trump and his family launched the TRUMP OFFICIAL and MELANIA TRUMP meme coins fetching them massive gains. Similarly, Walters also explained how the US president signed an executive order to establish a crypto reserve and his recent launching of the USD1 stablecoin.
The lawmaker warned that the House is on the verge of making a mistake that will support the insider efforts of the president, and allow him to write the rules for his own gain. She warned that Trump is only moving to make more money at the expense of every investor.
Lawmaker raises concern over Trump’s involvement in the crypto sector
Also, Massachusetts Senator Elizabeth Warren and the other four senators raised concerns about the conflict of interest that is emerging as a result of the advancing crypto regulatory landscape in the US. The lawmakers bemoaned
The lawmakers sent to the chairman of the Federal Reserve’s supervision and regulation committee, Michelle Bowman, and the acting Comptroller of the Currency, Rodney Hood. More so, the letter surfaced when the members of Congress were deliberating on a bill; the Guiding and Establishing National Innovation for US Stablecoin also known as the GENIUS Act.
Under the proposed legislation, the Office of the Comptroller of the Currency (OCC) and the Federal Reserve will maintain oversight functions on the stablecoin sector. Meanwhile, with the letter, the US lawmakers asked the two institutions how they intend to regulate WLFI and its new USD1 stablecoin.
The senator bemoaned how possible conflicts involving the financial gains of Trump and the regulatory establishments the agencies will put in place. They narrated how his involvement would affect the independence of the two bodies in discharging their duties.
Will it delay the Stablecoin Bill?
Trump’s involvement in the cryptocurrency space has kept regulators and analysts alike on their toes, trying to understand what the future of the industry holds under the new president. The gains his family members received for their involvement in the sector further raise eyebrows.
Recently, Bubblemaps, a crypto analytical firm revealed that about $30 million worth of MELANIA meme coins were sold secretly. The report intensified rumors that the team behind the project is secretly dumping it.
Without a doubt, the announcement of WLFI to launch the USD1 dealt huge blows to the advancement the Stablecoin bill has enjoyed so far. By that, the issue may stall the progress of the bill’s passage.
Nevertheless, the act has more chances of becoming a law considering its wide range of support among lawmakers, top government officials, and the shift in the US crypto regulatory landscape. While it is fair to admit that the latest development may force the bill to stall, it is only a matter of time before the Stablecoin Act becomes law.
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