Two leading Democratic lawmakers have called on the U.S. Securities and Exchange Commission (SEC) to safeguard records related to former President Donald Trump’s cryptocurrency venture, World Liberty Financial, as they investigate possible conflicts of interest.
In a letter to acting SEC Chairman Mark Uyeda, obtained by Reuters, Senator Elizabeth Warren and Representative Maxine Waters requested details to clarify whether the Trump family's financial involvement in World Liberty Financial is influencing SEC actions. The lawmakers pointed to a recent Reuters report that highlighted Trump’s deep financial ties to the crypto firm.
With Republicans controlling both the House and Senate, Democrats lack the power to hold formal hearings or launch official investigations, making the letter a request rather than a binding demand. The White House, in response, asserted that Trump’s assets are held in a trust managed by his children, ensuring no conflicts of interest.
World Liberty Financial has raised over half a billion dollars in recent months, with governance structures that experts say favor insiders. Trump’s family now holds claims to 75% of the net revenues from token sales and 60% of operational profits once the business expands. Reuters reported that these terms entitle the family to approximately $400 million in fees.
The lawmakers are asking the SEC to retain and share any records of communications between the White House and the agency regarding World Liberty Financial, including those involving key Trump family members and business partners. They are also seeking details on safeguards in place to prevent undue influence over the SEC’s regulatory decisions.
Trump's business empire announced in January that his investments and assets would be held in a trust managed by his children, with an attorney acting as an ethics adviser to prevent conflicts.
Among the specific records Democrats are requesting are documents related to crypto entrepreneur Justin Sun, a major investor in World Liberty Financial with a reported $75 million stake. Sun, who has faced SEC scrutiny in the past, has taken on an advisory role within the venture.
Trump has positioned himself as a champion of cryptocurrency, vowing to reshape regulations to facilitate its widespread adoption in the U.S. His family has already secured hundreds of millions of dollars through various crypto-related initiatives.
Under Democratic SEC Chair Gary Gensler, the agency took a tough stance on cryptocurrency enforcement. However, Uyeda’s SEC, with Republican Commissioner Hester Peirce spearheading industry collaboration efforts, has shifted its approach, including downsizing its crypto enforcement team.
World Liberty Financial recently announced plans to launch a U.S. dollar-backed stablecoin, USD1, on March 25. The House Financial Services Committee, led by Republicans, is currently debating legislation on stablecoin regulation. During Wednesday’s discussions, Waters criticized the bill, vowing to oppose it unless Trump is barred from owning a stablecoin venture.
“With this stablecoin bill, this committee is setting a dangerous precedent—allowing the president and his insiders to craft financial regulations that benefit themselves at the expense of the public,” Waters said.