WLFI Rejects Senate Probe Into USD1 Stablecoin, Citing Political Motivations

World Liberty Financial (WLFI), the issuer of the USD1 stablecoin, has publicly dismissed a Senate inquiry into its operations as politically charged and lacking substantive merit. The rebuke follows Senator Richard Blumenthal’s (D-CT) announcement of a preliminary investigation into WLFI’s governance, foreign investment sources, and potential national security risks tied to its stablecoin project.

The probe, initiated on May 6 by the Senate Permanent Subcommittee on Investigations, has drawn scrutiny over alleged connections to former President Donald Trump’s crypto ventures. Blumenthal’s office emphasized concerns about the opaque structure of the USD1 stablecoin and its implications for financial stability.

Market observers note the inquiry reflects growing regulatory unease with private stablecoin issuers, though WLFI’s defiant response suggests a protracted legal battle may loom. The outcome could set precedents for how Congress oversees crypto-native financial instruments.