Investing.com -- Five Democratic senators, spearheaded by Elizabeth Warren, expressed concerns about World Liberty Financial, a cryptocurrency project supported by President Donald Trump and his family. The senators sought clarification about the project’s recently revealed intentions to issue a stablecoin, as reported by the Wall Street Journal on Friday.

In a letter sent on Friday, the senators highlighted a potential "extraordinary conflict of interest" for U.S. financial regulators tasked with supervising the cryptocurrency entity. The letter was addressed to Michelle Bowman, the Federal Reserve’s vice chair of bank supervision, and Rodney Hood, the acting comptroller of the currency, as stated by the Journal.

The senators posed questions about how regulators would handle oversight considering the company’s connections to the current president.

There is legislation currently making its way through Congress that would establish a regulatory framework for stablecoins. Stablecoins are digital currencies that serve as dollar-equivalent tools for storing value or buying other cryptocurrency assets.

This proposed bill would assign the Federal Reserve and the Office of the Comptroller of the Currency (OCC) as regulatory authorities. It also stipulates specific standards for reserves and consumer protections.

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