US Lawmaker Proposes to Replace Dollar With Stablecoin

California Representative Maxine Waters, the ranking member of the US House Financial Services Committee, used her opening remarks at a markup hearing to express concern over former President Donald Trump’s business ties to the crypto industry.

She specifically criticized the launch of a stablecoin by a company supported by his family.

During the April 2 hearing, Waters accused Trump of profiting from “multiple crypto schemes,” including a US dollar-pegged stablecoin released by World Liberty Financial (WLFI), which is backed by his family.

She referenced Trump’s memecoin introduced in January, his proposed national cryptocurrency reserve, and WLFI’s USD1 token launched in March.

Waters argued that the committee’s work on a stablecoin bill was legitimizing efforts by Trump and his inner circle to craft financial rules for personal gain.

She warned that Trump could push for the use of his own stablecoin for federal payments, potentially replacing the US dollar.

Waters is not alone in her criticism. Several lawmakers and experts from both parties have raised alarms about Trump’s involvement in crypto, pointing to possible conflicts of interest.

Committee Chair French Hill, who spoke earlier at the hearing, acknowledged that the Trump family’s ties to the industry complicate the path forward for legislation.

Representative Bryan Steil, the sponsor of the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, did not directly address Waters’ remarks but emphasized consumer protections.

Hill emphasized the need for a well-defined federal framework for payment stablecoins, though he did not mention Trump in his statement.

The committee also reviewed proposed amendments to the STABLE Act and considered bills aimed at preventing illicit finance through emerging technologies and banning the creation of a US central bank digital currency (CBDC).

The markup hearing was a key step before any votes could be held to move the legislation forward in the House.

Sources:

https://cointelegraph.com/news/maxine-waters-donald-trump-replace-us-dollar-stablecoin

https://www.youtube.com/live/RqPhSNZZ3wo

https://punchbowl.news/article/finance/economy/french-hill-trump-crypto-ties/