Lawmakers Question SEC’s Independence Amid Trump’s Crypto Involvement
Democratic lawmakers in the United States have raised concerns about potential conflicts of interest involving President Donald Trump and his family’s financial ties to World Liberty Financial (WLFI), a cryptocurrency firm.
Senator Elizabeth Warren and Representative Maxine Waters have formally asked the Securities and Exchange Commission (SEC) to preserve all communications related to WLFI, suggesting that the regulatory body may be influenced by Trump’s crypto ventures.
In a letter addressed to acting SEC Chair Mark Uyeda on 2 April, Warren and Waters questioned whether the president’s involvement with WLFI could impact the agency’s regulatory decisions.
The letter stated,
“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—or lack thereof—of the cryptocurrency industry, creating an obvious incentive for the Trump Administration to direct federal agencies, including the SEC, to take positions favorable to cryptocurrency interests that directly benefit the President's family.”
The lawmakers further warned that Trump’s administration could direct federal agencies, including the SEC, to take positions that benefit the president’s personal financial interests.
Source: House Financial Services Commit
Trump’s Expanding Crypto Interests Raise Red Flags
The letter follows WLFI’s recent launch of a stablecoin, USD1, on both the BNB Chain and Ethereum blockchain.
Trump has been vocal about his support for cryptocurrency, and since returning to office, he has pursued policies that directly benefit the sector, including plans for a national cryptocurrency stockpile and the release of the TRUMP memecoin.
According to Warren and Waters, the public deserves transparency regarding Trump’s crypto ventures and their influence over regulatory agencies.
The letter demands that Uyeda provide records of communications between the SEC and the Trump family, as well as any internal discussions about WLFI.
The 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.”
SEC’s Direction Under Trump’s Leadership
Since Trump appointed Uyeda as acting chair, the SEC has reportedly halted investigations into several cryptocurrency firms, including some linked to individuals who contributed to Trump’s 2024 presidential campaign.
The letter also highlights concerns over Trump’s nominee for permanent SEC chair, Paul Atkins, who is expected to face a Senate Banking Committee vote on 3 April.
If confirmed, Atkins would oversee regulatory policies that could significantly impact the crypto industry.
Warren and Waters’ concerns suggest that the Trump administration’s push for crypto-friendly regulations could be shaping the SEC’s decisions.
Trump Family’s Stake in WLFI and Potential Financial Gains
According to Reuters, the Trump family has taken control of WLFI and secured a significant share of its earnings.
It has been revealed that the family “has a claim on 75% of net revenues from token sales and 60% from World Liberty operations once the core business gets going”.
Based on this arrangement, the Trump family “is currently entitled to about $400 million in fees” from the company.
Despite the controversy, the Trump administration has denied any conflicts of interest.
A White House spokesperson stated that “President Trump’s assets are in a trust managed by his children. There are no conflicts of interest.”
WLFI also rejected the allegations, with a spokesperson calling Warren’s letter “disgusting, false, and dangerous.”
Stablecoin Legislation Debate and Trump’s Influence
On the same day Warren and Waters sent their letter, the House Financial Services Committee, led by Republicans, discussed legislation that would regulate stablecoins.
The Trump administration has identified stablecoin adoption as a key priority, raising concerns about whether WLFI’s stablecoin, USD1, could be used for government payments.
During the hearing, Waters stated she would oppose the bill unless there were measures to prevent Trump from owning a stablecoin business.
She said,
“With this stablecoin bill, this committee is setting an unacceptable and dangerous precedent.”
The lawmakers’ letter to the SEC also requests records related to WLFI investor Justin Sun, who has contributed $75 million to the firm and now serves as an advisor.
The SEC recently paused its case against Sun and his affiliated companies, further intensifying concerns over the agency’s impartiality.
Uyeda has not publicly responded to the letter but has confirmed through a spokesperson that he will reply directly to members of Congress.
Trump Family Turns to Crypto After Banks Cut Ties
Once sceptical of cryptocurrency, President Trump has since shifted his stance, advocating for policies to position the U.S. as a leader in digital finance.
Eric Trump explained in a recent interview on FOX Business that the Trump family started to deepen its involvement in cryptocurrency after traditional banks refused to serve them.
He described how financial institutions “cancelled” them due to their political ties, leading them to embrace crypto as an alternative.
Their growing interest is reflected in recent ventures, including a partnership with crypto mining firm Hut 8, involvement in the World Liberty Financial DeFi protocol, and investments in digital assets such as memecoins and NFTs.
Eric Trump highlighted crypto’s transparency, efficiency, and resistance to censorship as key reasons for their support, stating that blockchain technology will play a fundamental role in reshaping the financial system.
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