- DWF Labs transferred $25M USDC to Trump-linked WLFI, signaling strategic support as USD1 stablecoin gains momentum.
- HIPPO rebounds 5.49% after DWF Labs injects $1.5M in token support, stabilizing the market across major exchanges.
- SEC affirms USDC and USDT are not securities while the STABLE Act paves legal clarity for dollar-backed stablecoins.
DWF Labs transferred 25 million USDC to World Liberty Financial (WLFI), a firm associated with Donald Trump. The move follows WLFI’s launch of USD1, its own stablecoin, designed for market-making. Just a day before this transfer, WLFI sent DWF Labs 1 million USD1, hinting at deeper strategic cooperation. This high-profile transaction comes as stablecoins gain attention in U.S. regulatory circles and signals growing confidence in USD-backed crypto assets.
Besides the WLFI deal, DWF Labs took steps to stabilize HIPPO, a recently volatile token. The firm spent $1.5 million acquiring HIPPO tokens across MEXC, Gate.io, and KuCoin. HIPPO saw a recent price dip, triggering market uncertainty. However, the token is now up 5.49% over the past 24 hours, trading at $0.00404. Its trading volume reached over $22 million, indicating renewed investor interest.
Market Stabilization Through Direct Support
DWF Labs clarified that its HIPPO purchase wasn’t promotional. Instead, the move aimed to offer real support during turbulent conditions. The firm stated that HIPPO reached out first, and they immediately responded. Moreover, they emphasized the importance of genuine backing over hype. The timing reflects their strategy to offer liquidity and market confidence during downturns.
Additionally, these actions show how market makers like DWF Labs play a vital role in token stability. Their presence on top exchanges ensures visibility and access for retail and institutional traders alike. Consequently, HIPPO’s rebound shows how such interventions can reverse negative trends in token performance.
SEC Clarifies Stablecoin Status
Meanwhile,Stablecoins like USDT and USDC are not categorized as securities, according to recent confirmation from the US Securities and Exchange Commission. Issuers and users that manufacture or redeem stablecoins should rest easy knowing that this choice has been made. Besides, this comes as the adoption of stablecoins rises significantly across DeFi and payment systems.
Moreover, the House Financial Services Committee passed the STABLE Act this week. This legislation creates a clear legal framework for dollar-backed stablecoins and their reserves. Hence, regulators are building clearer guardrails for the digital dollar economy.
