Updates
Kevin Lehtiniitty Comments on Trump’s Stablecoin Push and Banking Disruption
Mar 31, 2025
March 31, 2025 - As stablecoin legislation rapidly advances through Congress, Kevin Lehtiniitty, CEO of Borderless.xyz, shared his thoughts on the potential disruption to traditional banking caused by President Donald Trump’s entrance into the digital asset space. Lehtiniitty’s comments, featured in The Information, came in response to the launch of USD1 — a new stablecoin from World Liberty Financial, a crypto venture spearheaded by the Trump family.
“People are going to try to curry favor with the Trump administration by supporting his stablecoin,” Lehtiniitty said, highlighting the political implications of Trump’s direct involvement in shaping the future of stablecoins. With USD1 targeting institutional, sovereign, and retail investors, and backed by reserve assets such as cash and treasuries, its entrance into the market adds significant pressure to banks already grappling with the rapid pace of regulation.
The Trump administration has prioritized passing stablecoin-focused legislation by August, catching banks and regulators off guard. Lawmakers from both parties are advancing bills that could fundamentally reshape how stablecoins interact with the financial system — including proposals that would allow certain issuers to bypass traditional banks altogether.
Lehtiniitty’s remarks point to a larger industry shift as stablecoins gain legitimacy and challenge long-held financial structures. The Trump-backed USD1, expected to be rolled out with BitGo as custodian, marks the first time a U.S. president has directly participated in a digital asset launch — raising both enthusiasm and concerns over potential conflicts of interest.
Regulators and bank lobbyists have expressed concern over the destabilizing potential of stablecoins, with some pushing to restrict interest payments and limit non-bank entities from issuing them. Meanwhile, major financial institutions, including Bank of America and PayPal, are reportedly exploring stablecoin offerings of their own in response to the shifting landscape.
As stablecoins continue to evolve from crypto-native instruments into systemic financial tools, Lehtiniitty’s insights underscore the high-stakes transformation now underway in U.S. financial markets.
For the full article, please visit The Information.
