WLFI Slams Senate’s USD1 Stablecoin Inquiry as Trump Hyperlinks Spark Nationwide-Safety Alarm

World Liberty Monetary (WLFI), the issuer of the USD1 stablecoin, publicly rejected a Senate probe into its operations, dismissing the inquiry as politically motivated and missing substance.

The general public response got here shortly after Senator Richard Blumenthal (D-CT), rating member of the Senate Everlasting Subcommittee on Investigations (PSI), revealed that his workplace launched a preliminary inquiry into WLFI’s political connections and international funding sources on Might 6.

The senator raised alarms over the stablecoin challenge’s governance, nationwide safety implications, and potential monetary entanglements, significantly its ties to President Donald Trump.

In a proper letter, Blumenthal requested intensive documentation from each WLFI and Struggle Struggle Struggle LLC, the corporate behind the Official Trump meme coin (TRUMP).

The letter alleges that these entities could have violated federal ethics legal guidelines by facilitating monetary transactions involving international nationals going through prosecution or by creating potential conflicts of curiosity involving Trump.

It additional accuses WLFI and TRUMP of offering substantial monetary advantages to Trump and his associates.

The probe follows a broader name from Senators Elizabeth Warren and Jeff Merkley, who earlier demanded an ethics investigation into what they termed a “staggering battle of curiosity” involving WLFI, USD1, and a reported $2 billion international funding routed via Binance.

Contained in the USD1 Stablecoin: Claims of Transparency and Monetary Inclusion

In a letter issued via the regulation agency BakerHostetler, WLFI rejected the allegations and reaffirmed its dedication to monetary transparency and U.S.-based compliance.

“World Liberty Monetary is just not working within the shadows,” the attorneys wrote. “It’s constructing a clear, compliant monetary system rooted in U.S. belief, regulation, and management, with values like accountability and greenback dominance guiding each step.”

The agency emphasised that its flagship product, USD1, is a completely reserved, dollar-backed stablecoin collateralized by short-term U.S. Treasuries and money equivalents.

WLFI insists that its mission is to extend international demand for U.S. debt devices and broaden greenback entry to underserved areas worldwide.

“The corporate rejects the false alternative between innovation and oversight,” the letter continued. “What it opposes is the misuse of regulatory authority and uncertainty to suppress lawful innovation. The way forward for finance should be formed in Washington, D.C.—not in Beijing, Moscow, or behind the closed doorways of legacy establishments proof against evolving to serve the wants of consumers around the globe.”

BakerHostetler’s attorneys concluded by framing WLFI as a part of a broader motion to protect American financial management within the digital period.

Blumenthal additionally despatched a separate letter to Invoice Zanker, CEO of Struggle Struggle Struggle LLC, questioning the corporate’s conduct in launching the Trump meme coin and elevating considerations a couple of “Dinner with Trump” promotion.

The senator speculated {that a} small group of insiders could have profited tremendously from the challenge. As of now, Struggle Struggle Struggle LLC has not responded publicly to the allegations.

In response, WLFI’s attorneys categorically denied any affiliation with Struggle Struggle Struggle LLC or Zanker. “The unfounded assertion of a non-existent relationship” was among the many factual errors in Blumenthal’s letter, they said.

Political Crypto, International Buyers, and Regulatory Crossroads

The WLFI probe signifies the rising pressure between politics and digital belongings as high-profile figures deepen their involvement in crypto.

President Donald Trump himself has beforehand promoted digital asset initiatives, together with the controversial $TRUMP meme coin, whereas concurrently criticizing central financial institution digital currencies (CBDCs).

Including to the complexity, WLFI has acquired substantial backing from international buyers. Chinese language entrepreneur Justin Solar reportedly dedicated $30 million to the challenge and serves as an adviser to the agency.

The agency can be linked to capital sources in Abu Dhabi. These connections have sparked considerations about potential international affect over a U.S.-based monetary instrument.

Earlier this month, Home Democrats launched a parallel investigation into Trump’s deepening involvement within the crypto sector.

In a letter dated Might 14, Representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin known as on Treasury Secretary Scott Bessent to launch all suspicious exercise studies (SARs) filed since 2023 regarding Trump-connected entities, together with WLFI and the Official Trump token.

In response to the rising considerations, Senate Democrats launched the Trendy Emoluments and Malfeasance Enforcement (MEME) Act on Might 6.

Proposed by Senator Chris Murphy, the invoice seeks to forestall federal officers, together with the president, vice chairman, members of Congress, and their households, from creating, selling, or financially benefiting from digital asset initiatives, together with cryptocurrencies, securities, and tokenized commodities.

The publish WLFI Slams Senate’s USD1 Stablecoin Inquiry as Trump Hyperlinks Spark Nationwide-Safety Alarm appeared first on Cryptonews.