WLFI’s history increases eyebrows
WLFI is not new to debate. Before Trump’s second presidential office, this project started notes. The price of the coin has soared, but it has fallen rapidly, causing blame for the pump and dump system.
Since then, WLFI has created suspicious movements. The company often purchases a large amount of encryption just before major government encryption events. One example is the $ 20 million token WLFI. White House Encryption Summit March 7.
Critics are concerned that the direct relationship with Trump’s WLFI can have an unfair impact on him. As WLFI’s portfolio grows and regulators are weakened, many people erase You can form a policy that benefits your company.
USD1 Stablecoin has more risks
The WLFI announced the USD1 on March 25, which said, “It will be 100% sponsored by the US Treasury, US Dollar Deposits and other cash equivalents. Border Faster and safe.
However, concerns have become stronger after WLFI has recently raised $ 500 million through token sales.
Critics are now worried that the USD1, which is now related to the sitting president, can do the following.
- Allow foreign companies to affect.
- It weakens trust in financial regulations.
- Risk manipulation of the encryption market.
- Violate the Emoluments provisions of the US Constitution.
Andrew Rossow, a cyber legal expert, called it a “direct insult to constitutional protection.” Because he owns 60%of the Trump family WlfiForeign companies can get favor using USD1.
Major concerns about USD1
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apprehension |
explanation |
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Foreign influence |
Foreign investors can use USD1 to shake US policy decisions. |
|
manipulation |
Trump’s role can give him the benefits of his insiders and can risk the operation of the encryption market. |
|
Conflict |
As a president, Trump was able to pass the encryption -friendly law by benefiting from WLFI. |
|
Regulatory gap |
Weak supervision leaves room for unidentified financial activities. |
|
Constitutional violation |
The USD1 can violate the Emoluments clause designed to limit foreign leaders. |
Former officials share warnings
Former SEC encryption policy expert Corey Frayer said the USD1’s focus on paying borders is surprising. He pointed out that foreign actors could invest to be closer to the administration.
Democrats Maxine Waters Memecoin And maybe USD1. This increases the risk of bad actors to access US -connected financial assets.
Critics demand action
Heath Mayo, the founder of the principle, thinks it is “dangerous” for the sitting president to publish a coin supported by public debt. He sees it as a misuse of taxpayer credit.
Rossow pointed out another major problem. Trump is forming stability regulations through genius laws while promoting USD1. This dual role creates potential “constitutional violations” and harms fair competition.
What can you do?
councilor Elizabeth Warren Already requested an ethical investigation. She accused Trump’s encryption transactions personally abundantly and dangerous the financial market.
Rossow suggested that other organizations can enter. Financial crime execution networks (FINCEN) and state regulators can still act even if Congress is slow. He also said international regulators could press more powerful encryption rules in the United States.
He stressed that “protect fair governance” and need immediate measures to protect the global financial system.
Mixed opinions within the industry
Not everyone is seeing a problem. Some of the world of encryption are regarded as the mainstream encryption.
In Chris Barrett Chain link The USD1 praised the dollar’s global dominance. Arnoud Star Busmann, the CEO of Quantoz Payments, believes that stablecoins, such as USD1, will be more accessible to encryption of existing finance.