As crypto stablecoin legislation develops, there are significant concerns associated with Trump’s USD 1. On Wednesday, members of the U.S. Congress examined a proposed crypto stablecoin bill, marking a major step toward stablecoin regulation.
Only a few weeks have passed since Web3 Liberty Financial Initiative (WLFI), which is endorsed by Trump, announced the debut of its USD1 stablecoin on March 25. The stablecoin is tied 1:1 to the US dollar.
Given the President’s immunity powers, Democratic legislators expressed doubt about Trump’s ties to USD1, pointing to possible threats to regulatory oversight and financial stability.
Some committee members also questioned the ramifications of a politically connected stablecoin becoming widely used, according to reporting from Reuters.
Critics contend that stablecoins like USD1 might be used for financial and political leverage or represent systemic problems in the absence of strict federal control.
The discussion around stablecoin restrictions is expected to heat up as the measure moves through Congress.
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Legislators’ responses to issues pertaining to compliance, transparency, and the relationship between digital assets and political power will be actively watched by industry participants.
In accordance with the new MiCA regulations, Binance, the biggest exchange globally, has delisted the Tether (USDT) stablecoin for users who live in the EU.
Markets have not displayed any unusual swings on Thursday, despite the fact that stablecoins are still making news.
Data shows that the overall market capitalization of stablecoins is $238 billion, with a little increase of 0.1% over the last day.
