Is Trump’s Crypto Coin the New Royal Family? $2 Billion, No Interest, and Plenty of Drama 🤨🤑

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Scott Bessent, a man who presumably enjoys his breakfasts unsalted, suffered the exquisite agony of modern American democracy today: being questioned by politicians with time on their hands and headlines at stake. They grilled him until not even a garnish of credibility remained, though—let us be honest—the outcome scarcely threatened the nation’s supply of dollar-backed stablecoins or the collective caffeine intake of the House Financial Services Committee.

Committee Attempts To Decipher the Latest Trumpian Business Puzzle

World Liberty Financial—established in the halcyon days of 2024 by those whose surnames rhyme with “rump”—magically conjured up $550 million in governance token sales. The Trump family stands poised to pocket about 75% of revenues, possibly to be spent on gold-plated golf carts or yet another indestructible red cap.

In March, this fine establishment introduced USD1, a stablecoin purportedly backed by US Treasuries and “cash equivalents”—a phrase bankers utter with a straight face, but which would make any satirist weep with gratitude. 

Abu Dhabi’s state-backed MGX leaped upon this proposition with all the subtlety of a billionaire’s yacht, agreeing to toss a precarious $2 billion onto Binance. This had the immediate effect of vaulting USD1 to the front row of stablecoins, the equivalent of skipping the queue at Claridge’s with a forged invitation and a wink.

Representative Brad Sherman, not to be outdone, pointed out that a 4% market rate on such a sum bestows upon Trump and friends an $80 million annual gift, exquisitely gift-wrapped and entirely interest-free. He inquired, with all the faux-naïveté of a man who found a Fabergé egg in his garden, whether this qualifies as a hidden subsidy.

“Abu Dhabi just announced that they were going to give $2 billion to a stablecoin put forward by World Liberty Financial, and it pays no interest. So you and I are both finance people. Just want to check my math, assuming a 4% rate of return. Is this interest‑free loan of $2 billion worth $80 million every year to WLFI and its Trump owners?” Sherman said, before presumably falling exhausted upon his abacus.

Bessent, who must now surely dream of simpler interrogations (perhaps from crocodiles or small, vengeful dogs), insisted he hadn’t reviewed the expense ratio, that no stablecoins pay interest (heavens, such generosity), and that regulators had so far failed to notice any subsidies, hidden or otherwise.

The sniff of political favor wafted unmistakably through the hearing. Lawmakers, ever at their most visionary when sniffing rivals’ campaign contributions, demanded Treasury decree what does and does not constitute “untoward support”—preferably before lunch.

This burlesque took inspiration from a New York Times exposé, which revealed clandestine “endorsement” bartering under the Trump name, deals with the world’s more mysterious firms, and sudden government policy acrobatics tailor-cut for WLFI.

The Times, clutching its pearls, noted that WLFI had apparently leapt the chasm between private profit and public influence in entirely new and creative ways—leaving only a faint aroma of scorched norms wafting in its wake.

“In a statement, a spokeswoman for President Trump noted that his assets are in a trust managed by his children. And as a result, there are no conflicts of interest. The trust still benefits President Trump directly,” the Times declared, raising a collective national eyebrow.

Congressional Democrats, displaying a zeal for financial transparency unseen since their last campaign finance dinner, proposed new laws: full expense-ratio transparency for stablecoins, outright bans on interest-free largesse, and—one can only hope—a return to less theatrical headlines.

Supposedly, this will yield a market where conflicts of interest are as rare as a modest Mar-a-Lago chandelier. Stay tuned for responses from World Liberty Financial, should they deign to reply before the next controversy arrives. 👀

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2025-05-07 21:03