A US dollar-pegged stablecoin launched by a cryptocurrency platform tied to US president’s family Donald Trump’s family could complicate Bipartisan’s ongoing efforts to pass Stablecoin law in Congress, which has raised concerns about potential interests.
Crypto platform associated with World Liberty (WLFI) World Liberty Financial USD .
In spite of political pushing from the lawmakers of the democratic partyWLFI’s Stablecoin plans are in accordance with current US Stablecoin law, according to Anastasija Plotnikova, co-founder and CEO of Blockchain Regulatory Firm Fideum.
“Planned backing, audit, qualified precautions, public blockchain and non-native produce-all of these elements are in line with genius and stable gestures,” he said in an interview with Cointelegraph.
“I want to argue that this is a direct expression of support to the US -based stablecoins, and in any case, the Stablecoin provider is subject to OCC permission, state regulators and the board of Federal Reserve managers,” he added.
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The launch came as the two major stablecoin bills moved to Congress.
The stable law, introduced on February 6, aims to create a clear framework of regulation for the dollar denomination payment of stablecoins. It focuses on transparency and consumer protection and provides federal and state management.
Source: Stable gesture
The Genius Act, short for guiding and establishing a national change for US Stablecoins, will establish collateralization guidelines for those who provide stablecoin while in need of full compliance with anti-money laundering laws. The law recently passed The Senate Banking Committee by a vote of 18-6.
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Trump’s USD1 Stablecoin “dumps a wrench in Bipartisan efforts”
While some see WLFI’s stablecoin as a positive signal for crypto adoption, others are afraid that the passage of current law may be complicated, politicizing it in the process.
“The new US Dollar-Pegged Stablecoin, USD1, is throwing a wrench into Bipartisan’s efforts to pass Stablecoin law, probably something like the Genius Act,” said Dmitrij Radin, the founder of Zekret and Chief Technology Officer of the Fideum.
“In the Trump family holding the main shares of stake and revenue, critics such as Senator (Elizabeth) Warren and Representative (JIM) Himes are calling potential conflicts of interest,” Radin told Cointelegraph, added:
“Remembering is that any law can be seen as a financial benefit to Trump, who hesitates some lawmakers. While the bill may still pass, this twist may delay it or force more strict policies to keep it neutral.”
While Stablecoins appear ready for the mainstream adoption, the “political drama” can push the coastal change if the regulators have become so restricted, Radin said, adding that the banks and the Federal Reserve “are still pushing” against the adoption of Stablecoin.
Meanwhile, professionals in the crypto industry have Driven lawmakers in the US To create more clarity of regulation around stablecoins and crypto banking relations before lawmakers have moved on to focus on crypto tax laws.
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