Eric Trump on Stablecoins and the US Dollar’s Strength
Eric Trump, the son of US President Donald Trump and a businessman with multiple crypto projects, remarked that stablecoins might help maintain the US dollar’s strength.
In a recent interview with The New York Post published on Friday, Eric Trump expressed his conviction that stablecoins would “save the US dollar.” He specifically mentioned USD1, the stablecoin linked to the Trump family’s crypto initiative, World Liberty Financial, which has faced scrutiny in Washington.
Controversies Surrounding World Liberty Financial
When World Liberty Financial (WLFI) — the crypto project supported by the Trump family — announced its plans in late March, critics raised concerns about potential conflicts of interest. Attorney Andrew Rossow told at that time that the stablecoin represents “a direct affront to constitutional safeguards meant to prevent conflicts of interest.”
In April, US Representative Maxine Waters, the ranking member of the US House Financial Services Committee, even suggested that Donald Trump aimed to substitute the US dollar with his stablecoin:
Additionally, five Democratic senators warned in a March letter that a sitting president’s financial stake in a stablecoin posed “unprecedented risks to our financial system.”
The Trump administration later developed US stablecoin regulations with the GENIUS Act, which President Trump enacted on July 18. Just one month later, critics highlighted that the US president’s personal fortune had reportedly increased by approximately $2.4 billion from his crypto-related ventures since entering the market in 2022.
In early August, crypto-skeptic US Senator Elizabeth Warren, along with Senators Chris Van Hollen and Ron Wyden, sent a letter to the Office of the Comptroller of the Currency, voicing concerns about possible conflicts of interest related to the Trump family’s crypto business. The senators expressed alarm regarding the implications of the recent stablecoin legislation.
It’s noteworthy that Eric Trump is not alone in asserting that stablecoins might bolster — or safeguard — the US dollar’s dominance. Back in February, Federal Reserve Bank Governor Christopher Waller stated his support for adopting stablecoins, as they “will broaden the reach of the dollar across the globe and make it even more of a reserve currency than it is now.”
LayerZero Labs founder and CEO Bryan Pellegrino mentioned in early April that stablecoins could be the most effective means for the US government to uphold the US dollar’s hegemony in international financial markets, claiming that stablecoins might be “the last Trojan Horse or vampire attack on every single other currency in the world.”
However, not everyone agrees. European asset manager Amundi pointed out in early July that the newly introduced, more favorable stablecoin regulations might threaten the long-standing dominance of the US dollar.
