During a House Financial Services Committee hearing on Wednesday, Congresswoman Maxine Waters delivered a pointed critique of President Donald Trump, accusing him of leveraging cryptocurrency markets to augment his personal wealth, while leaving everyday investors with substantial losses.
Waters took aim at multiple digital asset ventures linked to Trump, particularly highlighting the Official Trump Token (TRUMP), which has plummeted nearly 90% from its January high. She asserted that the token’s decline erased billions in investor wealth, while the president and his affiliates reaped significant profits.
Financial disclosures and projections revealed during the meeting indicated that Trump’s net worth surged from $2.3 billion to $5.6 billion over the last year, much of which is tied to his involvements in crypto.
Concerns over USD1
Waters also criticized World Liberty Financial, a firm associated with the Trump family, which recently introduced USD1, a stablecoin backed by short-term U.S. Treasury securities.
She expressed concerns that the stablecoin’s structure might foster regulatory favoritism and be used for undisclosed political funding or foreign influence.
By emphasizing the stablecoin’s link to the dollar and its redemption process, Waters highlighted issues surrounding its resemblance to sovereign currency and the potential advantages it could gain from Trump’s involvement.
She urged lawmakers to ensure that any cryptocurrency legislation incorporates measures to address possible conflicts of interest involving elected officials.
Accusations of bias in committee actions
Waters took issue with the subcommittee on digital assets for promoting legislation that she believes benefits Trump’s cryptocurrency interests.
She contended that recent votes have positioned Trump to take the lead in the digital dollar arena by facilitating favorable treatment of stablecoins tied to his political and business circles.
Throughout the hearing, Waters called for stricter ethical guidelines regarding cryptocurrency legislation, especially with a sitting president financially involved in the sector.
She characterized the matter as a pivotal test of regulatory independence and transparency amid growing political influence in emerging financial markets.
The White House has yet to respond to the allegations made during the hearing. World Liberty Financial also chose not to offer any comments.