Trump Son Advocates Stablecoins To Preserve US Dollar Amid Regulatory Debate

Eric Trump, son of President Donald Trump, has asserted that stablecoins, particularly USD1 linked to the family-backed World Liberty Financial (WLFI) project, could be vital in preserving the strength and future dominance of the U.S. dollar by modernizing its infrastructure and enabling more efficient transactions. However, WLFI and USD1 have faced substantial criticism and scrutiny in Washington, with lawmakers such as Representative Maxine Waters and five Democratic senators expressing concern over potential conflicts of interest and the unprecedented risks posed by a sitting president's financial stake in stablecoins. These concerns include fears that the President might attempt to replace government payments systems with his own stablecoin. Despite such criticisms, some financial experts acknowledge stablecoins' potential to reinforce the dollar's hegemony. The Trump administration advanced stablecoin regulation through the GENIUS Act, signed into law in July 2025, which created a clearer regulatory framework but has not quelled concerns about conflicts of interest. Meanwhile, Ava Labs' Morgan Krupetsky describes stablecoins as digital savings accounts and highlights institutional interest in tokenized assets like U.S. Treasuries on blockchains, reflecting broader trends in digital asset adoption and regulatory shifts.