Eric Trump, son of US President Donald Trump, has argued that stablecoins may preserve the power of the US dollar and defended his family’s involvement in the digital currency industry. Speaking to the New York Post, he said he believed that stablecoins could be the answer to strengthening the dollar in an evolving global financial system.
Trump Family’s Crypto Project in Focus
Eric Trump highlighted USD1, the stablecoin linked to the Trump family’s crypto venture World Liberty Financial. The project, unveiled earlier this year, has been met with scepticism in Washington. Critics raised concerns about conflicts of interest given the direct financial involvement of a sitting president and his family in a cryptocurrency initiative.
When World Liberty Financial was first introduced in March, attorney Andrew Rossow described the venture as “a direct affront to constitutional safeguards” designed to prevent such conflicts. Democratic lawmakers soon echoed these concerns, questioning the implications of a president promoting and potentially benefiting from a private stablecoin.
Political and Legal Concerns
US Representative Maxine Waters, the ranking Democrat on the House Financial Services Committee, suggested in April that Donald Trump may seek to replace traditional dollar-based payments with his family’s stablecoin. Waters pointed to government transactions such as housing payments, Social Security, and even tax collection as potential areas where the stablecoin could be used.
In March, five Democratic senators issued a letter warning that a president’s personal financial stake in a stablecoin posed “unprecedented risks” to the US financial system. Their concern grew after President Trump signed the GENIUS Act into law in July, advancing stablecoin regulation in the country. Critics later noted that Trump’s personal wealth had increased by an estimated 2.4 billion dollars since entering the cryptocurrency sector in 2022.
Growing Scrutiny of Stablecoin Regulation
August brought further criticism as Senator Elizabeth Warren, along with Senators Chris Van Hollen and Ron Wyden, wrote to the Office of the Comptroller of the Currency. They argued that the new law failed to restrict the president, his family, or associates from profiting directly from stablecoin activity. Their letter highlighted the dangers of merging political power with private financial gain.
Despite these warnings, Eric Trump continues to emphasise the role of stablecoins in strengthening the dollar. He maintains that they represent a path to ensuring the currency remains dominant worldwide.
Wider Debate on Dollar Dominance
Eric Trump is not alone in making this case. Earlier this year, Federal Reserve Governor Christopher Waller stated that stablecoins could extend the global reach of the US dollar and enhance its role as the leading reserve currency. Similarly, Bryan Pellegrino, chief executive of LayerZero Labs, described stablecoins as the most effective tool available to maintain the dollar’s hegemony. Pellegrino suggested they could serve as a “Trojan Horse” that would weaken other currencies.
Not everyone agrees. In July, European asset manager Amundi warned that the new regulatory environment in the United States might in fact threaten the dollar’s long-term position. According to Amundi, too much reliance on stablecoins could undermine the balance of global finance.
Future of Stablecoins in the US Economy
The controversy surrounding the Trump family’s involvement continues to shape debate in Washington. While supporters argue that stablecoins will bolster the dollar and give the United States a stronger foothold in digital finance, critics warn of the dangers posed by mixing public policy with private wealth.
The issue has become a focal point of political and financial discourse, raising questions about transparency, accountability, and the future of money itself. For Eric Trump, however, the message remains clear: stablecoins, rather than undermining the dollar, could be the very mechanism that saves it.
