Eric Trump said that stablecoins will “save” the US dollar, a remark that reopened debate over who controls money, the power of private firms and how the sector should be policed. On the same day, World Liberty Financial issued USD 1, a stablecoin that printed USD 205 million and pushed the family linked company’s paper valuation to USD 2.4 billion, Cryptonews reports. Regulators and traders are watching because new supply shifts liquidity and alters the race between currencies.
The claim arrives as the stablecoin market enlarged: the global supply grew 18% in Q4 2025 and reached almost USD 200 billion, while the eight largest dollar tokens together topped USD 245 billion in July 2025. This backdrop frames how USD 1 could influence liquidity and the competition between currencies.
On 18 July 2025 President Biden signed the GENIUS Act, the first federal rule for payment stablecoins. It orders issuers to hold one dollar or an equal liquid Treasury for every token, keeps a capital buffer and bans paying interest to holders, as noted by Mondaq and the signed bill. Whether audits and supervision prove these 1:1 reserves will shape institutional confidence.
Power, conflicts and the global currency race
Lawyers as well as several senators say the Trump family’s stake in WLFI poses a conflict. Attorney Andrew Rossow told Cointelegraph/TradingView that the project “is a direct attack on constitutional safeguards.” Other voices welcome the product, and Bryan Pellegrino, CEO of LayerZero Labs, told Cointelegraph that dollar stablecoins act as a “Trojan Horse” that carries US currency into every digital market and so extends its reach.
Across the Pacific, JD.com and Ant Group test yuan backed stablecoins to cut reliance on the greenback, a step that adds pressure to de dollarize trade channels. If Chinese firms list yuan tokens on major exchanges, the market share of USD coins may slide, shifting the balance across trading venues.
Higher supply from mints such as USD 1 lubricates payments and trading, embedding the dollar deeper into online commerce according to supporters. Yet a single private group now sits on a multibillion pile, a concentration that invites audits and could end in fines, operating caps or forced divestment.
The GENIUS Act will be judged by how regulators verify 1:1 reserves and police capital ratios, with clear audits giving institutions confidence to hold or accept the tokens, while weak enforcement would do the opposite.
The next test is the daily execution of the GENIUS Act and the pace of further WLFI mints. Those actions will show whether stablecoins widen the dollar’s utility abroad or instead tighten control inside a politically exposed entity and trigger a regulatory clampdown.
