President Donald Trump made $2.2 billion during his first year in office, with $1.2 billion coming from the cryptocurrency industry, raising serious concerns about the stability of the US economy.
The president did not divest his businesses or place assets in a blind trust, unlike previous presidents, and openly profited from dealings with foreign governments and magnates.
>>> Gilbert Fire Department Honors Teen for Saving Elderly Woman in Heatwave
Crypto Windfall and Regulatory Changes
Trump's most lucrative move was from cryptocurrency, after he shifted from calling it a "scam" to launching his own crypto company, World Liberty Financial, and issuing a memecoin that netted him over $600 million.
He then dismantled crypto enforcement at the Securities and Exchange Commission, halting lawsuits and investigations, and the Department of Justice pulled back on money laundering prosecutions related to crypto.
Congress passed the Genius Act, which Trump promoted, integrating crypto into the regular banking system. Banks and retailers like Walmart can now issue stablecoins, which are not FDIC-insured.
>>> How New Glasses Are Changing Daily Life: Users Share Experiences
As of early June, there were 233 stablecoins on the market, with major financial institutions like Mastercard, Citi, and JPMorgan entering the space.
Systemic Risks Ahead
Economists warn that stablecoins could draw money from commercial banks, reduce lending to the real economy, and create a fragmented payment system prone to runs.
Yale's Gary Gorton and Jeffery Zhang cautioned that waiting to see how stablecoins play out would be a "terrible mistake," while Barry Eichengreen noted that panic selling could collapse treasury prices and destabilize the entire economy.
>>> Atlanta Workers Discard Homeless Belongings Near World Cup Venue
Rather than allowing private stablecoins, the government could issue a digital dollar through the Federal Reserve, but that would not provide the same profit opportunity for Trump and his family.
