US Lawmakers Urge SEC to Keep Records on Trump-Backed World Liberty Financial

Highlights:

• Warren and Waters questioned Trump’s ties to crypto and urged the SEC to provide information.
• SEC filings reveal that the Trump family controls 75% of World Liberty Financial’s token revenue.
• The lawmakers expressed concerns about Trump’s financial influence on crypto regulations and SEC enforcement.

The two Democratic lawmakers raised concerns about Trump’s financial ties to crypto. On April 2, Senator Elizabeth Warren and Representative Maxine Waters, ranking members of the Senate Banking Committee and House Financial Services Committee, sent a letter to acting SEC Chair Mark Uyeda. They requested that he provide Congress with information regarding former President Donald Trump’s connections to World Liberty Financial (WLFI).

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U.S. lawmakers request SEC investigation into Trump DeFi project

U.S Senator Elizabeth Warren, known as an opponent of the crypto sector, and Maxine Waters, the top Democrat on the House Financial Services Committee, have requested that the Securities and Exchange Commission…

— CoinNess Global (@CoinnessGL) April 2, 2025

Trump’s Influence on World Liberty Financial and Crypto Regulations

​The letter urges the SEC to preserve and provide records dating back to October 15, when World Liberty Financial began its WLFI token sale. This sale raised approximately $9 million in its initial offering, significantly below the $300 million target. The fundraising goal was later revised down to $30 million due to underwhelming demand. Overall, the token sale concluded with approximately $550 million raised, with 25% of the 100 billion token supply sold.

SEC filings and investigative reports reveal that World Liberty Financial is closely linked to Donald Trump, Donald Trump Jr., and Eric Trump through an entity called DT Marks DEFI LLC. As per the letter, the Trump family holds a 75% claim on the net revenue generated from the sale of WLFI tokens.

Additionally, they are entitled to 60% of the future earnings once the core operations of World Liberty Financial commence. This financial arrangement currently positions the Trump family to receive approximately $400 million in fees from the company, the lawmakers stated.

The lawmakers fear Trump’s financial stake in the company could influence crypto regulations. The legislators worry his administration might pressure the SEC. They believe this could lead to favorable decisions for crypto firms linked to him and his family.

The letter stated: 

“The financial interest that the Trump family has in World Liberty Financial presents an unprecedented conflict of interest that has the potential to shape the Trump Administration’s oversight — or absence of oversight — of the cryptocurrency industry.”

They also raised concerns about the SEC’s sudden decision to pause its enforcement case against Tron founder Justin Sun. Sun invested $30 million in World Liberty Financial on November 25 last year. He increased his investment to $75 million on January 19.

Under Acting Chair Mark Uyeda, the SEC has shifted from a more aggressive approach to a relaxed one. This change has resulted in the pausing or dropping of several crypto lawsuits, including cases against Coinbase, Kraken, Uniswap Labs, and OpenSea.

Lawmakers Call for Transparency on Trump’s Crypto Ties

The letter was sent about a week after World Liberty Financial announced the launch of its stablecoin, USD1, on the BNB Chain and Ethereum blockchain. Since January, Trump has introduced several crypto-related policies and projects that raise potential conflicts of interest. On January 17, he launched the $TRUMP memecoin, and on March 6, he signed an executive order establishing a Strategic Bitcoin Reserve. Warren and Waters believe Americans deserve transparency regarding Trump’s crypto ventures.

The Democratic lawmakers stated:

“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.”

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