World Liberty Financial (WLFI), issuer of the USD1 stablecoin, has publicly rejected a U.S. Senate probe led by Senator Richard Blumenthal, which investigates the stablecoin’s ties to former President Donald Trump and possible national security risks. The inquiry focuses on WLFI’s governance, foreign investment sources, and alleged financial benefits to Trump and his associates. WLFI dismissed the probe as politically motivated, emphasizing its commitment to transparency, U.S.-based compliance, and backing by short-term U.S. Treasuries and cash equivalents.
The investigation also targets Fight Fight Fight LLC, the firm behind the TRUMP meme coin, for potential ethical violations and conflicts of interest linked to Trump's crypto ventures. WLFI categorically denied any affiliation with Fight Fight Fight LLC or its executives.
The probe is part of broader congressional scrutiny involving allegations of foreign influence, including investments by Chinese entrepreneur Justin Sun and entities in Abu Dhabi. Senate Democrats introduced the MEME Act to bar U.S. officials from endorsing or profiting from meme coins after ethical concerns arose from these associations.
Eric Trump, prominently associated with WLFI, defended the family’s involvement in crypto during Consensus 2025, highlighting their commitment to the crypto community despite political challenges. Meanwhile, a stablecoin regulation bill is anticipated to be voted on soon, amidst rising tensions at the intersection of crypto innovation and government oversight.