- Lawmakers urge SEC to investigate Trump’s crypto project over potential conflicts of interest.
- WLFi’s USD1 stablecoin launch sparks regulatory concerns amid a $1.6 billion stablecoin surge.
Former U.S. President Donald Trump, known for his pro-crypto stance, has now ventured directly into the digital asset space.
His latest crypto project, World Liberty Financial, has already raised over half a billion dollars, with Trump’s family securing a significant portion of the funds through governance terms that experts say favor insiders.
Eric Trump recently revealed that he pivoted to crypto after the family business faced widespread backlash.
Lawmakers urge SEC to probe Trump’s crypto project
As expected, these sudden developments have caught the attention of top Democratic lawmakers, who have urged the U.S. Securities and Exchange Commission (SEC) to investigate potential conflicts of interest and preserve records related to Trump’s crypto dealings.
In a letter to acting SEC Chairman Mark Uyeda, lawmakers sought information to ensure transparency and oversight.
The lawmakers noted, noted,
“Help us better understand the extent to which the Trump family’s financial interest in World Liberty Financial may be influencing your and the Commission’s activities.”
Senator Elizabeth Warren and Representative Maxine Waters, both key figures in financial oversight, also urged the SEC to scrutinize President Donald Trump’s crypto venture.
However, with Republicans holding the majority in both the House and Senate, Democrats face significant hurdles in launching formal hearings or investigations.
In fact, their letter to the SEC, while raising concerns, lacks legal authority to compel action.
Execs stand in support of Trump and his venture
Meanwhile, a White House spokesperson acknowledged the development, highlighting the ongoing political divide over regulatory scrutiny in the crypto space.
The spokesperson said,
“President Trump’s assets are in a trust managed by his children. There are no conflicts of interest.”
Criticising Warren’s remarks, a World Liberty Financial another spokesperson added,
“It’s disappointing that Senator Warren is attempting to weaponize the power of the government to continue to harass and target the Trump family and our project. What’s implied in the letter is completely disgusting, false, and dangerous. She has been a vocal and consistent opponent of the crypto industry for years, but Luddites with political vendettas won’t stop us from building and deploying a world-class platform that can benefit millions.”
What’s more?
This coincided with Trump-backed World Liberty Financial (WLFi) pushing forward with its USD1 stablecoin launch.
However, concerns over regulatory oversight and financial integrity continue to mount over USD1.
Lawmakers have urged the SEC to preserve communications related to Trump’s crypto dealings, questioning whether safeguards exist to prevent conflicts of interest.
Meanwhile, the growing $1.6 billion surge in stablecoin reserves has intensified debates, especially as Congress considers the GENIUS Act to tighten regulatory control.
Hence, with scrutiny escalating, it remains unclear whether Trump’s embrace of crypto is a calculated strategy or a genuine push for financial innovation.
