What happened?
Eric Trump publicly said stablecoins could “save the U.S. dollar” while promoting his family’s World Liberty Financial and its USD1 token, and the Trump family also celebrated the Nasdaq debut of American Bitcoin Corp. Critics and lawmakers immediately raised alarms about conflicts of interest because the family stands to profit and the GENIUS Act didn’t block presidential financial gains from approved stablecoins. The comments came as the Trump family’s crypto ventures pushed their net worth up and drew fresh scrutiny from senators and regulators.
Who does this affect?
This matters to everyday Americans whose government payments and banking could someday be shifted toward private stablecoins if adoption grows or policy favors them. It also affects crypto investors, traditional banks and big institutional players that could see deposits and market share move into stablecoin-backed systems. Finally, lawmakers, regulators and Treasury managers are directly affected because they must address conflicts of interest and the financial-stability risks raised by these developments.
Why does this matter?
Fast stablecoin growth could reshape markets by turning issuers into major holders of U.S. Treasuries and by driving “deposit substitution” away from banks, a shift Citigroup warns could push the market past $1.6–$3.7 trillion by 2030 or, if regulation stalls, keep it much smaller. That change would alter liquidity, interest-rate dynamics and who funds government debt, and it could concentrate financial power in new private issuers. Political fights and unclear rules make the transition riskier, raising volatility and regulatory uncertainty for investors and institutions.