At a recent event on the White House South Lawn dubbed Trump’s Ultimate Fighting Championship Freedom 250, participants received unprecedented bonuses for their performances. However, rather than traditional U.S. dollars, the fighters were compensated with USD1, a synthetic dollar categorized as a stablecoin, managed by World Liberty Financial—a cryptocurrency business affiliated with the Trump family.
This unusual payment practice has raised significant ethical concerns. Richard Painter, a former chief White House ethics lawyer during George W. Bush’s presidency, pointed out that if a top government official, such as the Treasury secretary, had a financial interest in World Liberty and participated in matters impacting the business, it could lead to felony charges. According to Painter, under federal law (18 U.S.C. § 208), most executive branch employees are prohibited from engaging in official decisions that could affect their personal finances or those of close associates. However, this rule does not apply to the president, vice president, or members of Congress, creating a unique loophole that enables Trump to engage in matters involving his family’s business.
World Liberty Financial was established in 2024 by Trump family members and close associates, and has quickly escalated to become one of the more lucrative aspects of the president’s financial interests. The venture’s promotional material identifies prominent figures such as Trump, his three sons, and Steve Witkoff, a Middle East special envoy, as co-founders. Although Trump and Witkoff were removed from formal involvement once they took office, his recent financial disclosures indicate he has profited significantly—over $57.3 million—from sales of the venture’s governance token.
The stablecoin USD1, which debuted in 2025, is backed by liquid assets such as cash and U.S. Treasuries, generating consistent revenue through interest accrued on these holdings. As a result, it has ballooned in circulation to billions of dollars, producing substantial earnings for World Liberty.
As of now, the UFC has not provided details regarding which fighters were awarded payouts in USD1 or the amounts they received. Additionally, the White House has not responded to inquiries regarding whether any assessments were made to review potential conflicts of interest concerning the integration of a Trump-affiliated stablecoin in the festivities.
