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Magyar24 Oct 2026
A Circle shareholder filed suit in Washington against President Trump, World Liberty Financial and envoy Steve Witkoff, alleging foreign payments via the USD1 stablecoin violate the Emoluments Clause and harm USDC. Circle said it did not authorize the suit; the White House called it frivolous.
The battle between stablecoins has reached a federal courtroom, with a political twist. J. Benjamin Greenberg, who says he holds 10,000 shares of Circle Internet Financial, filed a lawsuit on Thursday in the US District Court for the District of Columbia against President Donald Trump, his family’s crypto company World Liberty Financial, affiliated entities, and US Special Envoy Steve Witkoff.
The allegations
Greenberg alleges that the defendants created a pathway for foreign governments to funnel money through World Liberty’s USD1 stablecoin, leaving Circle “unable to compete” with USDC. Central to the case is MGX, an Abu Dhabi entity tied to the UAE royal family, which invested $2 billion in Binance using USD1 in 2025. The Wall Street Journal reported in February that another vehicle backed by Sheikh Tahnoon bin Zayed Al Nahyan agreed to buy a 49% stake in World Liberty for $500 million.
“By accepting hundreds of millions of dollars from a foreign government, the President and his companies have diverted business from [Circle],” the complaint says. Greenberg asks the court to declare a violation of the Constitution’s Foreign Emoluments Clause, issue injunctions, order an accounting and disgorgement, and award damages. Zach Witkoff, the envoy’s son, is a World Liberty co-founder, as are Trump and his three sons.
Responses
A Circle spokesperson said the company “did not initiate, direct, authorize, or participate in the filing.” White House spokesperson Anna Kelly said Trump has “no conflicts of interest” and called the suit “frivolous.” World Liberty did not respond to Cointelegraph.
Political backdrop
With the midterms days away, Democrats are using Trump’s crypto ventures as a campaign issue. Consumer group Public Citizen reported the ventures netted Trump $1.4 billion in 2025 while costing investors about $4.7 billion.
What it means for traders
- Legal long shot: shareholder suits over emoluments face high hurdles, so direct market impact is likely limited.
- Stablecoin competition is political: USD1’s growth is tied to policy and politics, which adds headline risk.
- Stick to liquid stablecoins: compare stablecoin support across exchanges in our exchange comparison.
Sources
News is for information only and is not financial advice. More crypto news
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