Warren Demands SEC Release Information on WLFI, Investigating Trump Ties
Senator Warren and Congresswoman Waters have called on the SEC to release information about WLFI, a crypto firm linked to the Trump family, raising concerns over the impartiality of crypto industry regulation.
In the U.S., concerns are growing over the possible impact of President Donald Trump’s family's financial interests on cryptocurrency regulation.
Two leading lawmakers, Senator Elizabeth Warren and Congresswoman Maxine Waters, have called on Acting SEC Chair Mark Uyeda to provide full details regarding World Liberty Financial (WLFI), a crypto firm closely tied to Trump’s family.
This request comes amid ongoing discussions about new stablecoin legislation.
WLFI, founded by intermediaries linked to Trump, has already raised $550 million from an initial token sale. Notably, Trump’s family is entitled to 75% of the token sale proceeds, raising serious questions about conflicts of interest.
Related: House Committee Advances Stablecoin Regulation Bill Amid Crypto Debate
Investigation Details
In their letter dated April 2, the lawmakers outlined their demands for the SEC to preserve all records and communications related to WLFI activities from October 15, 2024, onward. Investigations indicate that WLFI has already raised $550 million, with estimated payouts to the Trump family amounting to roughly $390 million. Additionally, the family is set to receive 60% of the project's future revenue.
The American people deserve to know whether their financial markets are being regulated impartially or whether regulatory decisions are being made to benefit the President’s family financial interests,
said Senator Elizabeth Warren, a member of the Senate Banking Committee.
The lawmakers also raised concerns about the SEC’s sudden decision to halt an investigation into Tron founder Justin Sun, who invested $75 million in WLFI despite facing fraud charges in 2023. This has heightened suspicions about possible regulatory influence due to financial ties with Trump’s family.
Related: Trump Family Ties Complicate Stablecoin Regulation. Brian Armstrong Weighs In
Political and Regulatory Reactions
During legislative discussions on stablecoins, significant attention was drawn to WLFI's launch of its own stablecoin, USD1, announced just days before congressional committee votes. The debate quickly gained political momentum, as both Democrats and industry experts voiced concerns about potential conflicts of interest.
Related: World Liberty Financial Introduces USD1 Stablecoin
As a result, the SEC has until April 14 to respond to lawmakers' inquiries. While Republicans emphasize the importance of fostering innovation, Democrats highlight the necessity for transparency and unbiased regulation in the cryptocurrency industry.
Despite differing positions, the debate over the influence of family-related financial interests on regulatory decisions continues. Moreover, lawmakers stress that transparency and clearly defined regulatory responsibilities are essential for maintaining the stability and integrity of U.S. financial markets.
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