by Coinstrooper Crypto Articles
Quick Take
  • President Donald Trump, has made his most striking endorsement of digital assets yet, claiming that stablecoins could “save the U.S.
  • He argued that Bitcoin mining and tokenized finance could fuel “a kind of financial revolution” rooted in the U.S., adding, “I think it arguably saves the U.S.
  • The comments coincided with Trump’s appearance at Nasdaq, where he rang the opening bell to mark the debut of American Bitcoin Corp (ABTC).
  • The firm, which trades under the new ticker following a merger between American Bitcoin and Gryphon Digital Mining, is now valued at more than $500 million.

What Happened

The remarks, made in an interview with the New York Post on Friday, centered on his family’s crypto project, World Liberty Financial, and its flagship token, USD1.

The comments coincided with Trump’s appearance at Nasdaq, where he rang the opening bell to mark the debut of American Bitcoin Corp (ABTC).

The firm, which trades under the new ticker following a merger between American Bitcoin and Gryphon Digital Mining, is now valued at more than $500 million. Trump holds a large stake, according to the Financial Times.

Market Context

While President Trump has argued that a weaker currency benefits U.S. trade and pledged to make America the “crypto capital” of the world, Eric Trump insists that stablecoins could restore the dollar’s strength, even as doubts grow over who stands to gain the most from that vision.

Citigroup has projected a steep climb for the stablecoin sector, estimating its market capitalization could exceed $2 trillion by 2030, up from roughly $240 billion today.

But Citigroup also warned the market could stagnate at around $500 billion if regulatory uncertainty lingers. The note comes as Washington pushes ahead with stablecoin legislation under President Trump’s pro-crypto administration.

Stablecoin adoption is already reshaping government debt markets. Leading issuers like Tether hold tens of billions of dollars in U.S. Treasuries, and Citigroup predicts they could become among the largest holders of government debt by the end of the decade.

Why It Matters

Eric Trump, the son of U.S. President Donald Trump, has made his most striking endorsement of digital assets yet, claiming that stablecoins could “save the U.S. dollar.”

Trump said he believed surging demand for cryptocurrencies could bolster America’s position in global finance by channeling “trillions from around the world in wonky currencies” into the United States.

He argued that Bitcoin mining and tokenized finance could fuel “a kind of financial revolution” rooted in the U.S., adding, “I think it arguably saves the U.S. dollar.”

Critics Warn of ‘Unprecedented Risks’ Over Trump Stablecoin Ties

However, the family’s deep involvement in stablecoins has raised sharp criticism in Washington. When World Liberty Financial was first revealed in March, legal experts and lawmakers flagged conflicts of interest, warning of risks tied to a sitting president’s financial stake in a private stablecoin.

In April, Representative Maxine Waters suggested that Donald Trump could seek to replace traditional government payments, from Social Security to tax remittances, with his family-backed stablecoin.

Five Democratic senators also issued a letter warning that presidential ties to stablecoin issuance posed “unprecedented risks to our financial system.”

Its base-case forecast sees supply reaching $1.6 trillion, with a more optimistic scenario of $3.7 trillion.

The bank cautioned, however, that widespread use could disrupt traditional banking through “deposit substitution.”

Details

Attorney Andrew Rossow described USD1 as “a direct affront to constitutional safeguards meant to prevent conflicts of interest.”

Those concerns have only deepened since the Trump administration advanced the GENIUS Act, a regulatory framework for stablecoins signed into law in July.

The legislation cleared a path for U.S.-approved stablecoins but included no provisions to prevent the president, his family, or affiliated companies from benefiting financially.

Critics noted that Donald Trump’s personal fortune has grown by an estimated $2.4 billion from crypto ventures since he entered the sector in 2022.

In early August, Senators Elizabeth Warren, Chris Van Hollen, and Ron Wyden wrote to the Office of the Comptroller of the Currency, warning that the new law failed to address conflicts of interest surrounding the Trump family’s crypto businesses.

The debate comes at a delicate moment for the U.S. dollar. The greenback has faced pressure from Federal Reserve rate cuts and concerns over rising national debt.

Citigroup Sees Stablecoins Surging Past $2T by 2030

The bank’s report said adoption will be driven by clearer regulation and broader participation from both institutions and the public sector.