Mr. Trump's Son Issues USD1 Coin, U.S. Congress Debates

In a noteworthy move, the sons of President Donald Trump have launched USD1, a stablecoin issued by the World Liberty Financial project, with a value pegged to the USD. This cryptocurrency is backed by assets such as US Treasury bonds, bank deposits, and cash-equivalent assets, according to Politico. Stablecoin is a type of cryptocurrency that does not experience strong price fluctuations, designed to maintain a stable value, often pegged to a less volatile asset such as gold or USD. The actions of Donald Trump's sons come at a time when the Republican Party is pushing for a stablecoin issuance bill to establish clearer regulations for the cryptocurrency market. However, the Trump family's direct involvement in this field may create barriers to support from the Democratic Party, Politico noted. Unexpected move from the Trump family The involvement of the Trump family in stablecoin has raised questions among some Democratic lawmakers about the motives behind the legislation. Congresswoman Maxine Waters, a senior member of the House Financial Services Committee, is reportedly set to oppose the bill without a provision preventing Mr. Trump and billionaire Elon Musk from issuing stablecoin. "The fact that President Trump could benefit from this law will undermine confidence in the legislative process," Politico quoted an anonymous source from the Democratic Party as saying. Jim Himes, a veteran Democratic congressman of the House Financial Services Committee, has previously supported regulations on stablecoins but now expresses concern. He stated: "I can't think of anything that would harm bipartisan cooperation more than this." The issue is not only with Mr. Trump but also with the very impact of stablecoins on the financial market. When one of the most controversial political figures in America gets involved in this field, the likelihood of achieving consensus in Congress becomes more tenuous. This event also raises questions about the influence of the cryptocurrency industry on American politics. In recent years, this industry has spent hundreds of millions of USD on lobbying and supporting politicians who have a friendly stance towards crypto. Reactions of lawmakers Even within the Republican Party, the response to the Trump family's stablecoin project is not uniform. Senator Cynthia Lummis, one of the strongest advocates for cryptocurrency, acknowledged that the move by World Liberty Financial could complicate negotiations. "It shouldn't be an obstacle, but the reality is that it could be," Ms. Lummis said. However, some Republican lawmakers who fervently support Trump do not see this as an issue. "I don't think this is a problem," said Congressman Byron Donalds, a close ally of Trump. Representative Bryan Steil, the main sponsor of the stablecoin bill in the House, also affirmed: “We are focused on the content of the bill,” implying that the Trump family factor does not affect the legislative process. Despite the controversies, Republican lawmakers still hope to push the bill through Congress. The spokesperson for the House Financial Services Committee, Brooke Nethercott, emphasized: "If we want clear standards for this market, then maintaining the status quo is not the answer." One of the biggest debates surrounding stablecoins is whether they provide benefits or pose a threat to the financial system. Supporters, including Republican lawmakers and many financial corporations, argue that a strong legal framework will help stablecoins operate more safely, promote innovation, and create growth opportunities for the digital economy. However, the opposing side, mainly the Democratic Party and financial regulators, are concerned that stablecoins could create systemic risks, especially when such assets are not tightly regulated or when private entities have the authority for issuance without full oversight. Senator Kirsten Gillibrand, a co-author of a stablecoin bill awaiting a vote in the Senate, stated that the Trump family's involvement in this area could undermine confidence in stablecoins. She warned: "This move makes a serious financial system seem less serious."

On the other hand, people in the industry have a relatively different perspective. Zach Witkoff, co-founder of World Liberty Financial, stated: "We believe that stablecoin is an indispensable part not only for cryptocurrency but also for the entire financial ecosystem." Despite the controversies, it is likely that the stablecoin bill will still be passed. Democratic lawmakers, although opposing the involvement of the Trump family, still recognize the necessity of a legal framework for cryptocurrency, according to Politico.