Senator Elizabeth Warren and Representative Maxine Waters have addressed a letter to the U.S. Securities and Exchange Commission (SEC) Acting Chair, Mark Uyeda. In their letter, they call for transparency about any potential conflicts of interest involving President Trump's family's cryptocurrency company, World Liberty Financial, Inc. (WLF), and its influence on SEC decision-making.
According to a Reuters investigation, the Trump family, including President Trump, Donald Trump Jr., and Eric Trump, are directly linked to WLF. The company raised over $500 million through token sales, with the Trump family holding a claim on 75% of the net revenues, which could potentially result in $400 million in personal profit.
The lawmakers are urging the SEC to preserve all records and communications regarding WLF and any correspondences between the agency and the Trump family or their affiliates. They stated, “We request information from you and the Commission to enable Congress to fulfill its Constitutional oversight responsibilities and 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...”
Warren and Waters expressed concerns about the SEC's sudden decision to pause its enforcement case against Justin Sun, a significant investor in WLF. Sun was previously sued by the SEC for alleged fraudulent market manipulation. He had invested up to $75 million in WLF, after which the SEC paused its case against him, raising questions about potential influence from the Trump family's financial interests.
The lawmakers emphasize that "The Trump family’s financial stake in World Liberty Financial represents an unprecedented conflict of interest with the potential to influence the Trump Administration’s oversight...of the cryptocurrency industry…”
With the House Financial Services Committee set to vote on stablecoin legislation, there are added concerns about regulatory favoritism, particularly as WLF plans to launch a stablecoin, USD1. Warren and Waters are seeking full transparency from the SEC and answers about what safeguards are in place to prevent the Trump family's financial interests from impacting crypto policy decisions.