The stablecoins explode, their capitalization borders on tops and Wall Street loves it. Trump sees this frenzy a personal gold mine. He launched the USD1, a stablecoin leaning against American public debt, even though he regulates the sector. A president who makes his own currency is already unprecedented. But when personal interest is mixed with power, it is a democratic shock.
Presidential stable: conflict of interests XXL and violation of the Constitution
Trump is no longer content to influence the economy, he monetizes it for his benefit. His project USD1, controlled by World Liberty Financial (WLFI)rest on a dizzying model: a Stablecoin guaranteed by public debtmanaged by a 60% controlled company by the Trump family.
It is a colossal anomaly. A president who dictates the laws and shapes the market in which he invests is an unprecedented situation. USD1 is not only a financial matter, it is A major constitutional issue. The Emoluments Clause of the American Constitution prohibits a president from receiving financial advantages of foreign governments.
But with USD1, any foreign entity could buy stable stablecoin trump And thus offer an influence on American politics.
The shadow of opaque markets and doubtful investors already hangs. Justin Suncontroversial crypto entrepreneur, injected $ 75 million in WLFI, Even though he is in the viewfinder of the dry. Stablecoin USD1 therefore opens a highway with foreign funding … without democratic control.
A door wide open to interference.
For Andrew Rossowspecialized lawyer, this project ” directly violates constitutional safeguards intended to protect the integrity of power ». Are American institutions ready to let a president play with public debt as if he manages his own hedge fund?
USD1: a monetary weapon for Trump or a time bomb?
This stablecoin is not just a crypto affair. It is part of a much wider strategy. With USD1, Trump ensures an unprecedented power: He monetizes American debt for his benefit while positioning itself as an absolute regulator.
His future Genius Actsupposed to regulate stablecoins, could allow it to lock the market while maintaining its own stablecoin in the dominant position. Junaid Dar, financial analyst, talks about a scenario where Stablecoins would replace China as the main US debt buyer.
An unprecedented monetary manipulation which could upset global economic balance.
Regulators are alarmed. Elizabeth Warren demands an ethical investigation, denouncing a hostage taking of the Crypto market. Heath Mayo protests:
A president who issues a stablecoin leaning against public finances? It's a heresy!
However, so far, no authority seems capable or ready to stop the USD1.
Stablecoins have become a pillar of the Crypto market. The USDC has just exceeded $ 60 billion in capitalization, proof that Tokenized finance is anchored in the world economy. But when an exercise president becomes a major player, the border between regulation, personal profit and abuse of power becomes unclear. If USD1 thrives, Trump could redraw the monetary system … or rush one of the biggest financial scandals in history.
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