Eric Trump, the son of US President Donald Trump and a businessman involved in various crypto initiatives, stated that stablecoins could help maintain the strength of the US dollar.
In a discussion with The New York Post published on Friday, Eric Trump expressed his belief that stablecoins will “save the US dollar.” He pointed out USD1, the stablecoin associated with the Trump family’s crypto endeavor, World Liberty Financial, which has faced scrutiny in Washington.
When World Liberty Financial (WLFI) — the Trump family-supported crypto project — unveiled its plans in late March, critics raised concerns about potential conflicts of interest. Attorney Andrew Rossow indicated to Cointelegraph at that time that the stablecoin is “a direct affront to constitutional safeguards meant to prevent conflicts of interest.”
In April, US Representative Maxine Waters, ranking member of the US House Financial Services Committee, suggested that Donald Trump might aim to replace the US dollar with his stablecoin:
“Trump likely wants the entire government to use stablecoins for payments made by the Department of Housing and Urban Development, Social Security payments, and tax payments. And which coin do you think Trump would replace the dollar with? His own, of course.”
Conflict of interest concerns
Five Democratic senators also cautioned in a March letter that a sitting president’s direct financial involvement in a stablecoin presents “unprecedented risks to our financial system.”
Subsequently, the Trump administration moved forward with US stablecoin regulation through the GENIUS Act, which President Trump enacted on July 18. In the following month, observers noted that the US president’s personal wealth expanded by approximately $2.4 billion due to his crypto-related ventures since he entered the sector in 2022.
In early August, crypto-skeptic US Senator Elizabeth Warren, alongside Senators Chris Van Hollen and Ron Wyden, sent a letter to the Office of the Comptroller of the Currency voicing concerns over potential conflicts of interest connected to the Trump family’s crypto business interests. The senators expressed worries regarding the recently passed stablecoin legislation:
“Notably, the bill does nothing to prevent President Trump, his family, or his affiliates from financially benefiting from the issuance and sale of stablecoins and their use in transactions.”
Related: Europe risks USD dominance without common stablecoin rules: ECB adviser
Will stablecoins help the US dollar?
Eric Trump is not the first to assert that stablecoins will bolster — or safeguard — the US dollar’s supremacy. In February, Federal Reserve Bank Governor Christopher Waller remarked that he endorses the adoption of stablecoins as they “will broaden the reach of the dollar globally and enhance its status as a reserve currency.”
LayerZero Labs founder and CEO Bryan Pellegrino indicated in early April that stablecoins represent the optimal tool for the US government to uphold the US dollar’s dominance in international financial markets. He claimed that stablecoins might be “the last Trojan Horse or vampire attack on every other currency worldwide.”
Related: Regulated multicurrency stablecoins will end the dollar’s crypto monopoly
Conversely, others argue against this notion. European asset manager Amundi suggested in early July that the new, friendlier stablecoin regulations could jeopardize the long-term hegemony of the US dollar.
Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
