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TLDR
- Democratic lawmakers Warren and Waters sent a letter to SEC demanding records about Trump family’s ties to World Liberty Financial
- Trump family reportedly claims 75% of World Liberty token revenue, estimated at $390 million to date
- SEC has paused enforcement cases against several crypto firms, including one involving WLFI investor Justin Sun
- House Financial Services Committee passed stablecoin legislation amid partisan debate over Trump’s crypto conflicts
- WLFI recently launched a USD1 stablecoin while lawmakers were preparing to vote on stablecoin regulation
Democratic lawmakers have raised questions about potential conflicts of interest between the Trump family’s crypto investments and U.S. financial regulation. On April 2, Senator Elizabeth Warren and Representative Maxine Waters sent a joint letter to SEC Acting Chair Mark Uyeda requesting records about World Liberty Financial Inc. (WLFI), a crypto firm with close ties to President Donald Trump’s family.
The letter demands “all records and communications” about WLFI dating back to October 15, 2024, when the company began selling its $WLFI token. This offering has already brought in $550 million through exempt securities offerings.
According to SEC filings and reports, WLFI is closely linked to Donald Trump, Donald Trump Jr., and Eric Trump through an entity called DT Marks DEFI LLC. The Trump family reportedly holds claim to 75% of token revenue and 60% of future earnings from operations.
The lawmakers expressed concern that the family’s deep financial involvement “represents an unprecedented conflict of interest with the potential to influence the Trump Administration’s oversight—or lack thereof—of the cryptocurrency industry.”
Regulatory Shifts and Paused Enforcement
The letter comes as the SEC has pivoted from aggressive enforcement to a more hands-off approach to crypto regulation. Under Acting Chair Uyeda, the agency has paused or dropped multiple crypto lawsuits, including cases against Coinbase, Kraken, Uniswap Labs, and OpenSea.
One case that has drawn particular attention is that of Tron founder Justin Sun. The SEC quietly paused its enforcement case against Sun in February, shortly after he invested $75 million in WLFI. Sun had been charged with fraud in 2023.
This timing has raised questions about possible regulatory favoritism. The lawmakers asked the SEC to preserve “all internal memoranda justifying the initial enforcement decision,” including records of meetings between SEC officials and representatives of Sun or the Trump family.
Trump has promised broad changes to crypto regulation to encourage mainstream adoption in America. Since Trump appointed Uyeda as acting chair, the SEC has created a task force to work with the crypto industry, led by Republican Commissioner Hester Peirce, known for her pro-crypto stance.
Stablecoin Legislation Amid Family Interests
The lawmakers’ letter was sent on the same day the House Financial Services Committee voted to advance stablecoin legislation. The committee approved the STABLE Act with 32 members in favor and 17 opposed.
The bill, formally named the Stablecoin Transparency and Accountability for a Better Ledger Economy Act, would create a framework for dollar-denominated stablecoins, including reserve requirements and anti-money laundering standards.
WATCH: @RepYoungKim in support of the STABLE Act:
"The state-chartered pathway that is included in this bill would preserve that innovation by giving small companies access to a regulator tailored to their risk and size."
— Financial Services GOP (@FinancialCmte) April 2, 2025
Just days before the vote, WLFI announced the launch of its stablecoin called USD1. This timing added to concerns about potential political influence over the legislation.
During the committee meeting, Waters said she would not support the bill unless President Trump was blocked from owning a stablecoin business through World Liberty. “With this stablecoin bill, this committee is setting an unacceptable and dangerous precedent, validating the president and his insiders’ efforts to write rules of the road that will enrich themselves at the expense of everyone else,” she said.
Democrats proposed amendments to bar the president and top officials from launching such financial products while in office. All were rejected by the Republican majority.
The White House has responded to the concerns, stating that “President Trump’s assets are in a trust managed by his children. There are no conflicts of interest.”
WLFI also pushed back against the lawmakers’ letter. A spokesperson called it “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.”
The SEC has until April 14 to respond to the lawmakers’ letter. Warren and Waters concluded their request by stating, “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.”
The SEC spokesperson said in a statement that “Acting Chairman Uyeda will respond to Members of Congress directly.”
The post Democratic Lawmakers Request SEC Records on Trump Family Crypto Ties appeared first on Blockonomi.
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