Trump Backs Stablecoins With Freeze Powers He Banned in CBDCs
President Trump signed an executive order barring federal agencies from establishing a U.S. central bank digital currency, but co-owns World Liberty Financial, which issues USD1—a stablecoin with built-in asset-freezing powers identical to those that made CBDCs controversial.
Key Takeaway
Trump banned CBDCs but backs stablecoins with the same freeze powers that made CBDCs controversial.
The White House said a key stablecoin feature is that issuers can coordinate with law enforcement to freeze and seize assets. The July 30, 2025 report came six months after President Trump signed an executive order barring federal agencies from establishing or promoting a U.S. central bank digital currency.
Trump co-owns World Liberty Financial with family affiliates. The company issued USD1, a stablecoin with BitGo as official issuer and custodian. USD1's risk disclosures state BitGo can deny access to addresses, freeze the token temporarily or permanently if it suspects illegal activity or terms violations, report information to law enforcement, comply with legal orders, and block transfers to or from specific on-chain addresses.
The GENIUS Act created a federal framework for permitted stablecoin issuers in July 2025. The statute requires issuers to maintain technical capability, policies, and procedures to block, freeze, and reject specific or impermissible transactions and comply with lawful orders. Circle's USDC carries identical freeze powers — the company can block certain addresses, freeze tokens temporarily or permanently, report to law enforcement, and comply with legal orders.
Fiat-backed stablecoins hit ₱14.14 trillion ($238 billion) in market value as of July 14, 2025, according to the White House report. Current data shows the stablecoin market at ₱18.59 trillion ($313 billion) as of publication. A 2026 Boston Consulting Group report estimated annual on-chain stablecoin transfers will reach ₱3.68 quadrillion ($62 trillion), with ₱249.49 trillion ($4.2 trillion) representing real economic activity.
Tether launched USA₮ for the U.S. market in January 2026. Wyoming's 2025 legislative findings warned that a CBDC could centralize financial data, strengthen the link between household spending and the state, and make some purchases easier to restrict. Florida moved in 2023 to exclude CBDCs from Uniform Commercial Code treatment, and the GENIUS Act gives permitted stablecoin issuers the same freeze-and-seize toolkit that drove state-level CBDC resistance through January 2026.
This article was written based on reporting from CryptoSlate.
