Trump’s Crypto Moves Spark Debate as USD1 Surges to $2 billion

- Trump’s cryptocurrency deregulation stirs concern over potential favoritism. - His family’s stablecoin, USD1, gains massive market value amid reduced oversight. On July 10, 2025, Cointelegraph reported escalating concerns about the Trump administration's cryptocurrency deregulation policies. Critics argue these policies disproportionately benefit political insiders and wealthy elites. The administration touts these measures as a way to foster innovation, but they are instead raising questions about favoritism and conflicts of interest. Central to the controversy is the Trump-linked stablecoin USD1, issued by World Liberty Financial, which experienced explosive market growth after the administration loosened regulatory oversight. As a result, critics fear this deregulation shifts power within the crypto market away from its foundational goal of financial inclusion and toward a select group of influential players. World Liberty Financial, a company associated with Donald Trump’s sons, has emerged as a major player in the industry. The market capitalization of its stablecoin, USD1, ballooned from under $130 million in late April 2025 to over $2.1 billion by early May 2025, a staggering rise that analysts attribute to the administration’s deregulatory moves. This significant growth has fueled suspicions that Trump’s vocal support for cryptocurrency helps bolster his family’s financial interests, with analysts pointing to key actions that paved the way for USD1’s dominance, including the administration’s decision to disband the Department of Justice’s National Cryptocurrency Enforcement Team and its broader rollbacks of crypto-related oversight. Adding to the debate is the rise of “politico-coins”—digital tokens linked to political figures, including Trump. While marketed as innovative financial tools, critics argue these tokens consolidate political influence and economic power for elites, a trend that undermines the foundational ethos of decentralization in cryptocurrency. These developments have sparked bipartisan concerns, and Senate Democrats are leading the charge, arguing that the Trump administration’s measures risk enabling unchecked power and corruption within the market. However, supporters of Trump’s agenda defend the deregulatory policies, arguing they are necessary to accelerate innovation in the sector. They contend that reducing barriers to entry positions the U.S. as a global leader in cryptocurrency development, attracting greater investment and fostering competition. Opponents counter that these perceived benefits diminish consumer protections and skew the economic system in favor of insiders and elites. According to Market Survey data from July 10 at 16:09 UTC, USD1 is trading at $1. Its 24-hour volume has decreased by 0.003%. While the stablecoin market continues to gain traction, the broader implications of such rapid, deregulation-enabled growth remain up for debate.