Stablecoin USD1: Trump, Judge, Party, And Beneficiary?

The stablecoins are booming, their capitalization is nearing peaks, and Wall Street is crazy about them. Trump, for his part, sees this frenzy as a personal gold mine. He launches USD1, a stablecoin backed by U.S. public debt, even while regulating the sector. A president creating his own currency is unprecedented. But when personal interest mingles with power, it becomes a democratic shock.

Presidential Stablecoin: XXL Conflict of Interest and Violation of the Constitution

Trump is no longer just influencing the economy; he is monetizing it for his benefit. His project USD1, led by World Liberty Financial (WLFI), rests on a dizzying model: a stablecoin backed by public debt, managed by a company controlled 60% by the Trump family.

This is a colossal anomaly. A president dictating laws and shaping the market in which he invests is an unprecedented situation. USD1 is not just a financial matter; it is a major constitutional issue. The emoluments clause of the U.S. Constitution prohibits a president from receiving financial benefits from foreign governments.

But with USD1, any foreign entity could buy Trump stablecoin and thus gain influence over American politics.

The shadow of opaque markets and dubious investors is already looming. Justin Sun, controversial crypto entrepreneur, has injected $75 million into WLFI, even while being under the SEC’s scrutiny. The USD1 stablecoin therefore opens a highway for foreign financing… without democratic control.

A wide-open door to interference.

According to Andrew Rossow, a specialized lawyer, this project ” directly violates the constitutional safeguards intended to protect the integrity of power“. Are American institutions ready to let a president play with public debt as if managing his own hedge fund?

USD1: A Monetary Weapon for Trump or a Ticking Time Bomb?

This stablecoin is not just a crypto affair. It is part of a much broader strategy. With USD1, Trump ensures unprecedented power: he monetizes American debt for his benefit while positioning himself as an absolute regulator.

His future GENIUS Act, intended to regulate stablecoins, could allow him to lock the market while maintaining his own stablecoin in a dominant position. Junaid Dar, a financial analyst, speaks of a scenario where stablecoins would replace China as the main buyer of U.S. debt.

An unprecedented monetary manipulation that could disrupt the global economic balance.

Regulators are alarmed. Elizabeth Warren calls for an ethical investigation, denouncing a hostage situation in the crypto market. Heath Mayo protests:

A president issuing a stablecoin backed by public finances? It is heresy!

Yet so far, no authority seems capable or willing to stop USD1.

Stablecoins have become a pillar of the crypto market. USDC has just surpassed $60 billion in capitalization, proof that tokenized finance is embedding itself in the global economy. But when an incumbent president becomes a major player, the line between regulation, personal profit, and abuse of power becomes blurred. If USD1 thrives, Trump could reshape the monetary system… or precipitate one of the biggest financial scandals in history.