June 11, 2025
“Like officers at WLF, we assist efforts to advertise the U.S. greenback. We don’t, nevertheless, see use of USD1—an instrument that conveniently traces the pockets of the sitting U.S. President and his household—as important to that effort.”
The letter comes as Senate votes on the GENIUS Act, laws that may increase the attain of USD1 with out fundamental safeguards in opposition to corruption or abuse.
Washington, D.C. – U.S. Senators Elizabeth Warren (D-Mass.), Rating Member of the Senate Banking, Housing, and City Affairs Committee, and Jeff Merkley (D-Ore.), despatched a letter to the CEOs of MGX and Binance requesting the businesses protect and present paperwork and communications associated to their use of USD1—the stablecoin linked to President Donald Trump and his household—to settle a $2 billion funding deal.
“We write relating to MGX’s current resolution to make the most of USD1, World Liberty Monetary, Inc.’s (WLF) stablecoin, to make a $2 billion funding within the cryptocurrency trade Binance.1 As you realize, President Donald Trump and his household are financially linked to WLF—that means that the President stands to learn from your corporations’ use of USD1 on this transaction,” wrote the Senators.
Warren and Merkley’s new letter follows a response from WLF, the issuer of USD1, which confirmed that MGX and Binance would doubtless have settled the transaction utilizing a overseas fiat foreign money if USD1 had not been obtainable—successfully slicing President Trump right into a multi-billion-dollar worldwide deal that in any other case wouldn’t have benefited him.
“To assist us higher perceive the extent to which President Trump’s monetary stake in USD1 influenced your corporations’ resolution to make use of this stablecoin as an alternative of different types of cost not linked to the President of america, we request further info and paperwork from MGX and Binance relating to the funding,” the Senators wrote.
They continued: “ WLF’s assertion that your corporations would doubtless have chosen an alternate foreign money with out the presence of USD1 raises extra questions than it solutions: for those who had been doubtless to make use of different currencies, why—past the apparent good thing about gaining favor, instantly or not directly, with the Trump Administration—did you choose USD1, a newly-launched, untested cryptocurrency with a no monitor report?”
The Senators requested particular details about:
- who proposed utilizing USD1 within the transaction;
- whether or not anybody affiliated with President Trump or WLF communicated with the businesses about the usage of USD1;
- whether or not any inducements or incentives had been provided in trade for selecting USD; and
- how the businesses evaluated authorized, regulatory, and reputational dangers related to utilizing a stablecoin tied to the sitting President of america.
Beforehand, Sens. Warren and Merkley despatched a letter to Workplace of Authorities Ethics Performing Director Jamieson Greer to lift vital issues in regards to the MGX-Binance deal and the way it seems to counterpoint President Trump, his household, and members of his administration.
The Senate is ready to vote this afternoon on the GENIUS Act—a invoice that may considerably develop the stablecoin market and increase the attain of USD1 with out imposing needed protections in opposition to conflicts of curiosity, overseas corruption, or illicit finance. Senate Democrats, together with Warren and Merkley, have filed nationwide safety and ethics amendments to shut these loopholes and forestall self-dealing by public officers.
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