House Criticizes Bessent on Trump’s World Liberty Financial
The post House Criticizes Bessent on Trump’s World Liberty Financial appeared on BitcoinEthereumNews.com. US Treasury Secretary Scott Bessent was sharply questioned today by the House Financial Services Committee about Trump-affiliated World Liberty Financial (WLFI) and its new USD1 stablecoin. Congressional Democrats questioned Bessent whether no-interest stablecoins linked to Trump’s crypto ventures could mask hidden subsidies. Bessent Scrutinized Over President Trump’s World Liberty Financial World Liberty Financial, founded in 2024 with close Trump‑family ties, raised about $550 million in late 2024 by selling its governance token. The Trump family is entitled to roughly 75% of net revenues. In March, WLFI launched USD1, a dollar‑pegged token backed by US Treasuries and cash equivalents. Within weeks, Abu Dhabi’s state‑backed MGX agreed to deploy $2 billion of USD1 on Binance, instantly pushing USD1 into the top tier of stablecoins by market cap. Rep. Brad Sherman noted that at a 4% market rate, the deal effectively grants WLFI and its Trump owners an $80 million annual subsidy. He asked whether this “interest‑free loan” should count as hidden support. “Abu Dhabi just announced that they were going to give $2 billion to a stablecoin put forward by World Liberty Financial, and it pays no interest. So you and I are both finance people. Just want to check my math, assuming a 4% rate of return. Is this interest‑free loan of $2 billion worth $80 million every year to WLFI and its Trump owners?” Sherman said. To his knowledge, Bessent said he had not reviewed the token’s expense ratio and maintained that no stablecoins pay interest. He added that no regulator has formally labeled such purchases as hidden subsidies. Lawmakers warned this structure could mask political favors. They urged the Treasury to clarify when stablecoin deals cross into improper support. The hearing drew on a New York Times investigation. That report revealed secret multimillion‑dollar “endorsement” pitches under the Trump name, sales to foreign firms, and…
The post House Criticizes Bessent on Trump’s World Liberty Financial appeared on BitcoinEthereumNews.com.
US Treasury Secretary Scott Bessent was sharply questioned today by the House Financial Services Committee about Trump-affiliated World Liberty Financial (WLFI) and its new USD1 stablecoin. Congressional Democrats questioned Bessent whether no-interest stablecoins linked to Trump’s crypto ventures could mask hidden subsidies. Bessent Scrutinized Over President Trump’s World Liberty Financial World Liberty Financial, founded in 2024 with close Trump‑family ties, raised about $550 million in late 2024 by selling its governance token. The Trump family is entitled to roughly 75% of net revenues. In March, WLFI launched USD1, a dollar‑pegged token backed by US Treasuries and cash equivalents. Within weeks, Abu Dhabi’s state‑backed MGX agreed to deploy $2 billion of USD1 on Binance, instantly pushing USD1 into the top tier of stablecoins by market cap. Rep. Brad Sherman noted that at a 4% market rate, the deal effectively grants WLFI and its Trump owners an $80 million annual subsidy. He asked whether this “interest‑free loan” should count as hidden support. “Abu Dhabi just announced that they were going to give $2 billion to a stablecoin put forward by World Liberty Financial, and it pays no interest. So you and I are both finance people. Just want to check my math, assuming a 4% rate of return. Is this interest‑free loan of $2 billion worth $80 million every year to WLFI and its Trump owners?” Sherman said. To his knowledge, Bessent said he had not reviewed the token’s expense ratio and maintained that no stablecoins pay interest. He added that no regulator has formally labeled such purchases as hidden subsidies. Lawmakers warned this structure could mask political favors. They urged the Treasury to clarify when stablecoin deals cross into improper support. The hearing drew on a New York Times investigation. That report revealed secret multimillion‑dollar “endorsement” pitches under the Trump name, sales to foreign firms, and…
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