Some fighters competing in Sunday’s Ultimate Fighting Championship event on the White House lawn will receive bonus payments in USD1, a stablecoin issued by the Trump family’s crypto venture, World Liberty Financial. The move has drawn sharp criticism from Democratic lawmakers and ethics watchdogs, who argue it blurs the line between presidential power and private profit.
World Liberty confirms $250,000 in stablecoin bonuses
World Liberty Financial confirmed on Monday that UFC would award up to $250,000 in bonuses using USD1, a token pegged to the U.S. dollar. The company had signaled the arrangement before the event. The so-called ‘UFC Freedom 250’ event, which reportedly cost $60 million to stage, was held on the south lawn of the White House as part of the nation’s semiquincentennial celebrations. Sponsors included World Liberty, prediction market platform Polymarket, and Crypto.com, which offered $1 million in bonuses using its Cronos (CRO) token.
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Market impact and volatility concerns
USD1’s price briefly surged above $1 on June 12 and remained elevated, according to CoinMarketCap data. Trading volume jumped more than 93% in 24 hours to $2.38 billion. The stablecoin had traded below $1 for most of the prior month, raising questions about its peg stability. The sudden price spike and volume increase suggest heightened speculative interest tied to the UFC announcement, though the long-term reliability of the peg remains under scrutiny.
Ethics and conflict-of-interest accusations
Jaelin O’Halloran, a spokesperson for the Democratic National Committee, said the arrangement showed Trump ‘never misses an opportunity to use the power of the presidency to make himself and his family even richer.’ Trump’s January 2025 financial disclosures listed his holdings in World Liberty at over $50 million. The president also signed the GENIUS Act last year, establishing a federal framework for payment stablecoins, a move many Democrats criticized as a potential conflict of interest. White House spokesperson Davis Ingle told Cointelegraph that ‘there are no conflicts of interest,’ adding that Trump’s assets ‘are in a trust managed by his children.’
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Legal and regulatory backdrop
World Liberty, launched in 2024 by Trump family members and associates now linked to his administration, faces ongoing legal challenges. In April, Tron founder Justin Sun filed a lawsuit alleging the company froze his tokens without justification. World Liberty countersued weeks later. The company also has a pending application with the U.S. Office of the Comptroller of the Currency for a national trust charter, which would expand its regulatory footprint. In May 2025, a UAE company announced plans to use USD1 to settle a $2 billion investment in Binance, further highlighting the stablecoin’s growing role in large-scale transactions.
Conclusion
The use of USD1 stablecoins for UFC bonuses represents a significant intersection of sports entertainment, cryptocurrency, and presidential politics. While supporters see it as a sign of mainstream crypto adoption, critics view it as a deepening entanglement between public office and private enterprise. As regulatory frameworks evolve and legal challenges mount, the episode underscores the unresolved tensions around stablecoin governance and ethical boundaries in the digital asset space.
FAQs
Q1: What is USD1?
USD1 is a stablecoin issued by World Liberty Financial, a crypto company launched by members of the Trump family. It is designed to maintain a 1:1 peg with the U.S. dollar.
Q2: Why are UFC fighters being paid in USD1?
UFC partnered with World Liberty Financial to offer up to $250,000 in bonuses to fighters at the ‘UFC Freedom 250’ event held on the White House lawn, as part of the country’s semiquincentennial celebrations.
Q3: What are the ethical concerns?
Critics argue that using a stablecoin tied to the Trump family for an event on White House grounds creates a conflict of interest, as the president could benefit financially from policies affecting the crypto industry. The White House has denied any conflict, stating Trump’s assets are managed by his children.
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