TL;DR
- Democratic senators are demanding that World Liberty Financial turn over documents related to its new stablecoin USD1, which is tied to President Donald Trump.
- The investigation focuses on a $2 billion investment by Abu Dhabi’s MGX firm in Binance using USD1.
- The direct connection between this crypto project and Trump has raised serious concerns about potential international conflicts of interest.
Just days before Donald Trump’s scheduled trip to the Middle East, U.S. senators have zeroed in on one of the year’s most controversial crypto ventures: the launch of USD1, a stablecoin spearheaded by World Liberty Financial, a company co-founded by close allies of Trump. The controversy centers around a massive deal in which MGX, a UAE-backed fund, pledged to use $2 billion in USD1 to invest in Binance, a move that aligns suspiciously with the president’s upcoming diplomatic stops.
Senators Elizabeth Warren and Jeff Merkley are demanding that all communications between World Liberty and Trump administration officials regarding stablecoins be preserved and submitted by May 29. They argue that the financial ties between a dollar-pegged token and a politician with ongoing influence present an “unprecedented risk” to U.S. financial transparency.
Binance, MGX, and the Geopolitical Power of Crypto
In this context, Binance finds itself once again under scrutiny. Although the company has already faced massive fines and admitted guilt in past regulatory violations, its role in facilitating a deal involving a Trump-linked stablecoin and a foreign sovereign fund reopens long-standing debates. From a pro-crypto perspective, this case also highlights how cryptocurrencies are becoming powerful tools for international capital flows, bypassing traditional financial institutions and borders.
It’s undeniable that USD1 has already made a powerful entrance: with a market value exceeding $2.1 billion, according to CoinGecko, it is quickly becoming one of the world’s largest stablecoins.
Witkoff, Trump, and the Tokenized Financial Era
Steve Witkoff, one of the co-founders of World Liberty, has stated he is transferring his real estate and crypto assets to his sons to avoid potential conflicts of interest. Yet, this move hasn’t eased congressional concerns, as lawmakers warn that USD1 could become a tool for the Trump family to accumulate wealth under the guise of innovation and deregulation.
Despite the uproar, parts of the crypto community see this as further proof of stablecoins’ growing relevance in global finance. While bipartisan efforts to regulate these stablecoins remain stalled in the U.S. Senate, USD1 is demonstrating that the crypto market is far ahead of lawmakers in both pace and scale.
