USD1 Stablecoin Faces Scrutiny Over Attestation Delays
In the ever-evolving world of stablecoins, transparency is paramount. Yet, World Liberty Financial’s USD1, a stablecoin associated with the Trump family, finds itself under the microscope for failing to keep up with its monthly attestation reports. According to NYDIG, a leader in financial services and technology, this lapse has made waves among investors and regulators alike.
Falling Behind on Transparency
As of early October 2025, the latest attestation report for USD1 was from July, leaving a conspicuous gap in its transparency record. In contrast, competitors like Circle’s USDC have maintained a more current and consistent reporting schedule, with data available through August. Tether, another major player in the stablecoin arena, releases its reports quarterly, setting a standard of regularity that USD1 has yet to meet.
Greg Cipolaro, Global Head of Research at NYDIG, emphasized the importance of these reports. “For a project of USD1’s stature, up-to-date attestations are non-negotiable,” he stated. The lack of current reporting raises eyebrows, especially given USD1’s rising profile and its $2.7 billion supply.
The BitGo Connection
One of the key players in this unfolding story is BitGo Trust, responsible for overseeing the custody of USD1’s reserves. Despite this critical role, BitGo Technologies, the issuer, hasn’t provided an explanation for the reporting delays. This silence is significant, particularly as USD1 continues to gain traction globally.
Interestingly, NYDIG’s analysis reveals that the majority of USD1’s activity is happening offshore. Approximately 78% of the supply is held in addresses linked to overseas exchanges, suggesting that while the stablecoin is gaining momentum, its primary audience may not be domestic.
Looking Ahead: The GENIUS Act
The regulatory landscape is poised to shift with the forthcoming GENIUS Act, expected to take effect by early 2027. This legislation could pose a challenge for USD1, as it mandates that stablecoin issuance be limited to subsidiaries of regulated banks or state-qualified entities. NYDIG’s report indicates that BitGo Technologies, as it currently stands, doesn’t fit neatly into either category, which could necessitate structural changes for compliance.
Balancing Growth and Regulation
The situation highlights the delicate balance stablecoin issuers must maintain between growth and regulatory compliance. On one hand, USD1’s rapid expansion and market presence are evident, but the lack of updated attestation reports presents a hurdle that could impede further progress.
Moreover, the potential regulatory changes underscore the need for stablecoin projects to adapt proactively. Failure to do so may not only invite scrutiny but also risk exclusion from key markets.
Conclusion: A Call for Clarity
As USD1 navigates these challenges, the call for clearer communication and transparency grows louder. Investors and regulators alike seek assurance that stablecoins are backed by robust, verifiable reserves, and consistent reporting is a critical part of that equation.
While USD1 has garnered attention and growth, its path forward will likely depend on how swiftly and effectively it addresses these transparency concerns and aligns with upcoming regulatory standards. In the rapidly shifting landscape of digital finance, adaptability and transparency will be key to maintaining trust and ensuring sustainable growth.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
