World Liberty Financial Claps Back at Blumenthal’s ‘Misguided’ Stablecoin Investigation

Another day, another political theater targeting crypto—this time with Senator Blumenthal swinging at stablecoins. World Liberty Financial isn’t having it.

The financial giant just shredded what it calls a ‘flawed, politically motivated’ probe into its USD1 stablecoin. Their rebuttal? A 12-page demolition of the senator’s ‘factual inaccuracies’ and ‘regulatory overreach.’

Key takeaways:

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The ‘stable’ in stablecoin isn’t up for debate
: WLF’s reserves are audited quarterly—unlike, say, the U.S. national debt.

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Transparency > grandstanding
: The company openly publishes redemption data. Try getting that level of disclosure from your average Wall Street bank.

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Regulators gonna regulate
: Even if it means misunderstanding how blockchain actually works.

One thing’s clear: When politicians attack crypto, they’re either uninformed or protecting legacy finance’s turf. Place your bets.

• WLFI calls Blumenthal’s probe into USD1 stablecoin “fundamentally flawed.”
• Company defends stablecoin, emphasizing financial inclusion and dollar strength.
• Attorneys refute accusations of conflicts of interest ties to the Trump family.

World Liberty Financial (WLFI) has disputed the accusations made by Democratic Senator Blumenthal in his investigation into the company’s USD1 stablecoin and its ties to President Trump’s crypto ventures. The attorneys termed the investigation as “fundamentally flawed,” because it is based on incorrect information.

Today, my attorneys responded to a letter addressed to me by Senator Richard Blumenthal. Our response is attached to this post.

America — and the rest of the world — needs solutions like USD1. We will not be intimidated by politicians with an axe to grind: we’re too busy… pic.twitter.com/ItQ83ETZYf

Blumenthal, a top member on the Senate Permanent Subcommittee on Investigations, wrote to both World Liberty Financial and Fight Fight Fight LLC. Blumenthal expressed concerns about possible conflict of interest and financial violations linked to the TRUMP family and WLFI’s stablecoin. He stated that the companies transacted business with individuals who are under investigation by law enforcement which benefited the Trump family.

World Liberty Financial (WLFI) Defends USD1 Stablecoin

WLFI’s attorneys denied the accusations made by Senator Blumenthal. The company’s attorneys stated that USD1 is fully backed by U.S. Treasuries and cash equivalents. USD1 seeks to boost international demand for U.S. Treasuries and offer financial services to underbanked individuals across the world.

WLFI stated that USD1 seeks to enhance the international status of the U.S. dollar rather than weaken the U.S financial system. WLFI aims to provide people in underbanked areas with the opportunity to use U.S. dollar-based financial services. The company’s legal team refuted assertions made by Blumenthal that USD1 could pose a national security risk.

World Liberty Financial (WLFI) introduced the USD1 stablecoin in March 2025. The company recently announced the completion of a governance proposal to distribute USD1 tokens to qualified users. WLFI emphasizes that its business operations adhere to U.S. laws and regulations. The company stated that all its operations meet the legal requirements.

Trump’s Crypto Ties Sparks Uproar Amid Legislation

At the same time, other influential individuals have raised concerns about President Trump’s involvement in the crypto industry. Representative Maxine Waters expressed her reservations about President Trump’s stablecoin, USD1, because of its possible risks and lack of adequate regulations. Waters and other lawmakers have called for swift and cautious stablecoin regulation to avoid any conflict of interest.

WLFI’s lawyers maintain that the company is dedicated to promote innovation as well as establish a transparent and compliance financial system. Moreover, WLFI clarified that there is no association between it and Fight Fight Fight LLC or its founder.

World Liberty Financial (WLFI) has stated that it won’t allow political scrutiny to hinder its development.