Elon Musk’s “department of government efficiency,” known as Doge, recently gained access to treasury payment systems, prompting Democratic party leaders to promise protection against potential influence from Donald Trump. Schumer and Jeffries introduced the Stop the Steal act to prevent the takeover of critical government payment infrastructure. Simultaneously, a bipartisan effort led to the introduction of legislation allowing payments in cryptocurrencies called stablecoins, potentially paving the way for all government payments to be made in cryptocurrencies, including those in which the president has a business interest.

Stablecoins, which claim to hold the value of a currency like the US dollar for digital payments, have been criticized for their failure to maintain value, lack of federal consumer protections, and susceptibility to hacks and fraud without reimbursement mechanisms. The introduction of bills titled “Stable” and “Genius” reflects a nod to Trump’s past claims, but experts argue that these bills do not adequately protect consumers and may give undue power to crypto businesses.

Concerns have been raised that the push for stablecoin legislation could lead to the privatization of the dollar and weaken consumer protections. Trump’s executive order mandating digital payments to and from the government has raised alarms, particularly as his team’s involvement in the payment system may lead to public payments being made with private stablecoins.

The potential conflicts of interest arising from Trump’s involvement in the crypto industry, his administration’s plans to use stablecoins for government payments, and the Democrats’ support for stablecoin legislation have drawn scrutiny. Critics warn of the risks posed by such legislation and the need to address issues like money laundering and national security. The debate highlights the complex intersection of politics, cryptocurrency, and governance, with implications for financial stability and democratic integrity.