Warren Lambasts Trump's Stablecoin Project USD1, Accuses President of Using the Legislation to "Enrich" Himself.

On Wednesday, U.S. Senator Elizabeth Warren (D-MA) took aim at a stablecoin-focused bill making its way through Congress, accusing U.S. President Donald Trump of using the legislation to further his own financial interests.

U.S. Senator Elizabeth Warren (D-MA) on Wednesday slammed a stablecoin-focused bill that is currently being drafted by Congress, charging that President Donald Trump is using the legislation to further his own financial interests.

The Massachusetts senator shared the critique while linking a post about President Trump’s decentralized finance project launching its own stablecoin, USD1, on Ethereum and Binance’s BNB Chain.

“Congress should step up and fix the current stablecoin bill moving through the Senate that will make it easier for Trump—and Elon Musk—to take control of your money,” said Senator Warren, criticizing the "Financial Innovation and Technology for the 21st Century Act" (FIT21) bill.

The FIT21 bill aims to establish a clear regulatory framework for digital assets, with U.S. Rep. French Hill (R-AR) mentioning that in the “next few days,” legislators will roll out a revised bill.

In the meantime, the Trump administration is moving to make the U.S. the "crypto capital of the world" through a series of initiatives, including the creation of a SEC Task Force dedicated to overseeing digital asset regulations.

President Trump also called for “simple, common-sense rules for stablecoins and market structure” during a video call at the Blockworks crypto conference in New York last Thursday.

The stablecoin market currently holds over $238 billion in circulation, according to CoinGecko data, with Tether (USDT) making up a significant portion.

Trump’s crypto czar, David Sacks, has previously promised to introduce legislation on stablecoins and market structures within the first 100 days of Trump’s second term.

Senator Warren recently challenged Sacks to prove he’s not “directly profiting off of the Trump Administration’s efforts to selectively pump the value of certain crypto assets,” as he claimed he sold all his crypto assets before beginning in his role as crypto czar.

Elon Musk’s influence within the government, particularly through his role in the Department of Government Efficiency (DOGE), has only fueled Senator Warren’s concerns.

The initiative, which Musk heads, aims to reduce government bureaucracy and eliminate excess regulations, but it has faced criticism for potentially giving Musk—and by extension, his business interests—a disproportionate amount of influence over U.S. financial policy.

In January, Senator Warren lambasted DOGE in a letter to the Dogecoin aficionado, accusing the department of being a potential “veneu for corruption.”

The senator’s letter to Musk suggested a range of changes, including cracking down on tax loopholes for the wealthy and reforming government contracts to cut wasteful spending.