Lawmakers accuse Donald Trump of wanting to replace the US dollar with his stablecoin.

California Congresswoman Maxine Waters, a senior member of the House Financial Services Committee, used her opening statement at the hearing to criticize the business and ethical entanglements of U.S. President Donald Trump with the crypto industry, including the launch of a stablecoin by a family-backed company.

California lawmakers have highlighted a series of controversial moves by Donald Trump in the cryptocurrency space, including the launch of Trump’s memecoin in January, the proposal to establish a national cryptocurrency reserve, and his “private stablecoin,” referring to the USD1 token by WLFI released in March.

Congresswoman Maxine Waters spoke before the U.S. House Financial Services Committee on April 2 | Source: GOP Financial Services “Under the stablecoin bill, this committee is creating an unacceptable and dangerous precedent, paving the way for the president and his close associates to manipulate the rules to enrich themselves, regardless of the public interest,” Waters stated. She continued to warn:

“Trump may find a way to force the entire government to use his stablecoin for payments made by the Department of Housing and Urban Development, Social Security benefits, to tax payments. And what coin do you think Trump will replace the dollar with? Of course, it will be the coin that he controls himself.”

Not only Waters has spoken out against Trump’s cryptocurrency projects, but many lawmakers and experts from various political sides have also expressed concerns about the risk of conflicts of interest.

Before Waters’ speech, Chairman French Hill also emphasized that the Trump family’s involvement in the cryptocurrency industry is making the legal landscape “more complicated than ever.”

“If there is no way to prevent a U.S. President from owning and operating their own stablecoin business […], I could never support this bill and will urge other members not to facilitate it,” Waters asserted.

Meanwhile, Congressman Bryan Steil, who introduced the STABLE Act, did not directly respond to Waters’ concerns about Trump’s stablecoin but emphasized the need for consumer protection measures.

The chairman of the French Hill Committee also avoided mentioning Trump in the opening statement, but emphasized that a “clear federal framework” is necessary to manage stablecoins in the payment sector.

The cryptocurrency law is being passed in the National Assembly

The committee will review amendments to the STABLE Act, along with bills aimed at preventing illegal financing through emerging financial technologies and prohibiting the U.S. government from issuing central bank digital currency (CBDC).

This hearing is an important step before the committee decides whether to bring the bills to a vote in the House of Representatives.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

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Minh Anh

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