The USD1 stablecoin has come under fire due to concerns over transparency in its reserve structure, prompting market and political discussions about national security implications. Key points include: 1) the recent release of reports challenging the transparency of World Liberty Financial’s certification of USD1’s reserves. 2) These certifications have been criticized for failing to meet industry standards and raising questions about their accuracy; 3) the involvement of the Trump family with World Liberty Financial, a company directly linked to USD1’s creation, has fueled scrutiny over potential conflicts of interest and national security risks. 4) Industry analysts have expressed concerns that USD1’s claims of being backed by 1:1 U.S. Treasury bonds and cash equivalents are not supported, demanding more details. 5) The lack of clear reserve disclosures is prompting regulatory investigations, with previous instances of similar issues impacting stablecoin market stability and leading to stricter regulations. Despite this scrutiny, USD1’s market cap is $2.68 billion as of October 5th, 2025, though there has been a decline in trading volume. The article analyzes the current situation and explores the possible consequences for USD1 and the broader stablecoin industry.