President Donald Trump hosted a UFC event on the White House South Lawn, where fighters were awarded bonuses not in U.S. dollars but in USD1 stablecoins issued by World Liberty Financial, a cryptocurrency venture linked to the Trump family. The arrangement has sparked ethical concerns, as federal law exempts the president, vice president, and members of Congress from conflict-of-interest statutes that would otherwise prohibit such actions.
Ethical Loophole in Federal Law
Richard Painter, a former chief White House ethics lawyer under President George W. Bush, noted that while most federal officials would face criminal charges under 18 U.S.C. § 208 for participating in matters affecting their financial interests, the president and Congress are exempt.
If a Treasury secretary had a financial interest in World Liberty and then participated in any government matter that had a knowing economic impact on World Liberty, that Treasury secretary very likely would commit a felony,Painter told Fortune.
Trump Family's Crypto Venture
World Liberty Financial, founded in 2024 by Trump family members and close associates, has become a lucrative part of the president's portfolio. Despite Trump's formal removal from the company upon taking office, his financial disclosures reveal earnings exceeding $57.3 million from sales of the venture's governance token. USD1, launched in 2025, is backed by cash, U.S. Treasuries, and other cash equivalents, generating tens of millions annually from interest on reserves.
The White House has yet to comment on potential conflicts of interest regarding the use of Trump-linked stablecoins at the event. UFC officials also did not disclose which fighters received USD1 bonuses or the amounts distributed.