Democratic Senators say that the Trump encryption project brings “unprecedented risks” to the American financial system

Five senior Democratic members sent an official message on Friday to the Federal Reserve and the Currency Observer Office, asking how agencies plan to keep what they described as “unprecedented risks” resulting from President Trump’s new encoding project.

The move comes at a time when the Trump administration continues to pay $ 1, a symbol issued by the family owned by Liberty Financial, at the heart of the American economy.

the letter It was signed by Elizabeth Warren, a member of the Senate Banking and Housing Committee; Ron Wadeen, member of the Senate Finance Committee; Chris Van Holin, Jack Reed and Korea Booker, all of them, warned that Trump’s dual role as an organizer and a special encoder can blow a hole through all current financial protection.

They demanded the clarification of the Federal Reserve and OCC how they plan to prevent Trump from using his office to manipulate financial policy and protect his personal commercial interests.

The Democrats Question Wok on the Trump family USD1

Legislators He said The launch of USD1 puts Trump in a position that allows it to interfere with the financial organizers just as the Congress reviews the genius law, a bill that would grant federal reserve authorities and X to monitor Stablecoin.

While the bill claims that it enhances the enforcement of encryption, the copy is now reviewing does not include any restrictions on the president’s ability to overcome the regulatory measures that can harm the profitability of his distinctive symbol.

Senate members have warned that Trump could intervene to prevent any OCC decision on $ 1, or demanding to avoid setting strong rules for Stablecoins, or even preventing them from investigating the world completely financial freedom.

They added that in a crisis, Trump can direct the Fed Reserve Bank to launch a liquidity program specifically to support Stablecoins such as USD1 – or worse than that, allows special access to WLF by pushing the central bank to give it a major account, which allows direct relations with the Federal Reserve.

The group also reported that Trump would reject this type of help to the competitors of others, creating a completely unfair stadium. They pressed both parents to confirm whether they had placed internal controls in their place to prevent political intervention and to preserve organization, implementation and supervision free from the orders of the White House.

He asked the members of the Senate directly: “How will it protect your independence when the president’s private company is organized?”

The progress of the genius law in Congress

Since he took office, Trump has promised to make the United States “the world of encryption in the world” and claims that the dollar -backed Stablecoin is a step towards this goal.

On March 7, Trump met twenty executives for encryption at the White House and told the attendees that he wanted to pass Congress legislation in Stablecoin and send him to his office by August. Bo Heins, the chief White House adviser who focused on encryption, said later that the draft law could reach Trump for its signature by May.

The legislation, known as the Genius Law, was approved through the Senate Banking Committee with 18-6 votes. Until I got support from five democrats. But three of the five Senate members who signed the Friday -Warren, Van Holin, and Raid – against them in the committee. The other two, Booker and Wowen, are not in the committee, but they still have concerned about the bill’s lack of checks on the presidential authority.

The genius law is now heading to the Senate Hall. If passed, it will deliver Stablecoin to the Federal Reserve and OCC, but with no clear protection walls to preserve daily decisions. This is the place where the Senate members see the huge red flag: the person who signs the draft law can prevent executive procedures and tend to the system in favor of its own work.

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