{"id":838656,"date":"2025-04-03T08:12:34","date_gmt":"2025-04-03T13:12:34","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/03\/democrat-lawmakers-press-sec-for-records-on-trump-family-backed-world-liberty-financial\/"},"modified":"2025-04-03T08:12:34","modified_gmt":"2025-04-03T13:12:34","slug":"democrat-lawmakers-press-sec-for-records-on-trump-family-backed-world-liberty-financial","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/03\/democrat-lawmakers-press-sec-for-records-on-trump-family-backed-world-liberty-financial\/","title":{"rendered":"Democrat lawmakers press SEC for records on Trump family-backed World Liberty Financial"},"content":{"rendered":"
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\"Democrat Democrat lawmakers press SEC for records on Trump family-backed World Liberty Financial<\/span> Gino Matos \u00b7<\/span> 16 hours ago<\/span> \u00b7 3 min read<\/span> <\/span> <\/span> <\/span> <\/span><\/p>\n

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The letter seeks nine categories of information, including any internal communications regarding Trump\u2019s involvement in crypto and records concerning World Liberty Financial\u2019s USD1 stablecoin.<\/p>\n

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3 min read<\/span><\/p>\n

Updated:<\/span> Apr. 2, 2025 at 8:31 pm UTC<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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\"Democrat<\/p>\n

Cover art\/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.<\/p>\n<\/div>\n<\/div>\n

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Senator Elizabeth Warren<\/a> and Representative Maxine Waters<\/a> requested on April 2 that the US Securities and Exchange Commission (SEC) preserve and provide records related to World Liberty Financial (WLFI), a DeFi venture backed by President Donald Trump\u2019s<\/a> family.<\/span><\/p>\n

According to a Reuters report, a letter addressed to acting SEC Chairman Mark Uyeda<\/a> questions potential conflicts of interest stemming from the Trump family\u2019s involvement in the project. <\/span><\/p>\n

The letter also seeks information on whether the Trump family\u2019s financial ties to World Liberty Financial influence SEC policy or enforcement decisions.<\/span><\/p>\n

WLFI under scrutiny<\/strong><\/h2>\n

The move comes amid reports that Trump\u2019s family has assumed majority control of WLFI. They secured 75% of net token sale revenues and 60% of future business operations, entitling them to roughly $400 million in fees.\u00a0<\/span><\/p>\n

While the letter does not carry legal authority to compel action from the SEC, it signals growing concern over political entanglements in crypto regulation amid broader legislative efforts around stablecoins.<\/span><\/p>\n

Warren also published a letter on March 6 calling for transparency regarding White House \u201cCrypto Czar\u201d David Sacks\u2019<\/a> profits on his crypto holdings.<\/span><\/p>\n

The letter followed a<\/span> March 2 statement<\/a><\/strong> by Sacks, when he revealed that he had sold all his holdings, including Bitcoin (BTC<\/a>), Ethereum (ETH<\/a>), and Solana (SOL<\/a>), before the start of Trump\u2019s administration.<\/span><\/p>\n

Additionally, the letter questioned Sacks\u2019 profit by divesting his position in Bitwise\u2019s 10 Crypto Index Fund, to which he had exposure through the venture fund he co-founded, Craft Ventures.<\/span><\/p>\n

Lawmakers question SEC independence<\/span><\/h2>\n

The lawmakers\u2019 inquiry coincides with a House Financial Services Committee session on legislation regulating the issuance and use of stablecoins on April 2.\u00a0<\/span>The Trump administration has indicated that stablecoin regulation and integration are a policy priority for the White House.\u00a0\u00a0<\/span><\/p>\n

Waters stated during the session that she would oppose the bill unless provisions are added to block Trump or his affiliates from owning a stablecoin issuer.\u00a0<\/span><\/p>\n

She added:<\/span><\/p>\n

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\u201cWith this stablecoin bill, this committee is setting an unacceptable and dangerous precedent, validating the president and his insiders\u2019 efforts to write rules of the road that will enrich themselves at the expense of everyone else.\u201d<\/strong><\/p>\n<\/blockquote>\n

World Liberty Financial announced plans on March 25 to launch USD1, a US dollar-pegged stablecoin.<\/span><\/p>\n

In the letter, Warren and Waters requested that the SEC preserve communications from the Trump White House and provide records involving more than half a dozen Trump family members and their business partners.<\/span><\/p>\n

The lawmakers also asked what safeguards, if any, exist to prevent conflicts of interest from shaping SEC actions in light of what they called \u201cunprecedented financial ties to the crypto industry.\u201d<\/span><\/p>\n

Further questions on enforcement<\/strong><\/h2>\n

The inquiry further highlights recent structural changes at the SEC. Under former chair Gary Gensler<\/a>, the Commission took an aggressive enforcement stance toward crypto. <\/span><\/p>\n

Uyeda\u2019s tenure has coincided with a shift in posture, including downsizing the agency\u2019s crypto enforcement unit and forming a task force intended to improve collaboration with the industry.\u00a0<\/span><\/p>\n

The group is led by Commissioner Hester Peirce<\/a>, known by the community as \u201cCrypto Mom\u201d for her favorable stance toward crypto.<\/span><\/p>\n

The lawmakers also questioned the SEC\u2019s handling of its recent case against Justin Sun, who has emerged as a major investor in and advisor to World Liberty Financial.\u00a0<\/span>The regulator <\/span>paused its enforcement action<\/a><\/strong> against Sun and his affiliated companies on Feb. 27.<\/span><\/p>\n

The Trump Organization announced in January that the president\u2019s business interests would be placed in a trust managed by his children and that an independent attorney would oversee potential ethical concerns.\u00a0<\/span><\/p>\n

A White House spokesperson reiterated that \u201cPresident Trump\u2019s assets are in a trust managed by his children. There are no conflicts of interest.\u201d<\/span><\/p>\n

Warren and Waters\u2019 letter seeks nine categories of information, including any internal communications regarding Trump\u2019s involvement in crypto, records concerning World Liberty Financial\u2019s USD1 stablecoin initiative, and documents related to the SEC\u2019s dealings with Justin Sun.<\/span><\/p>\n

The SEC has not publicly responded to the lawmakers\u2019 request.<\/span><\/p>\n

Mentioned in this article<\/h6>\n
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\"XRP<\/a><\/p>\n<\/div>\n

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\n Gino Matos<\/p>\n","protected":false},"excerpt":{"rendered":"

Democrat lawmakers press SEC for records on Trump family-backed World Liberty Financial Gino Matos \u00b7 16 hours ago \u00b7 3 min read The letter seeks nine categories of information, including any internal communications regarding Trump\u2019s involvement in crypto and records concerning World Liberty Financial\u2019s USD1 stablecoin. 3 min read Updated: Apr. 2, 2025 at 8:31<\/p>\n","protected":false},"author":1,"featured_media":838657,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2212,4151],"tags":[],"class_list":{"0":"post-838656","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-democrat","8":"category-lawmakers"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/838656","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=838656"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/838656\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/838657"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=838656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=838656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=838656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}