Senator Elizabeth Warren and Representative Maxine Waters have requested the US Securities and Exchange Commission (SEC) to preserve and provide records related to World Liberty Financial (WLFI), a DeFi venture backed by President Donald Trump’s family. The letter addressed to acting SEC Chairman Mark Uyeda questions potential conflicts of interest arising from the Trump family’s involvement in the project and seeks information on whether their financial ties influence SEC policy or enforcement decisions.
The move comes as reports surface that the Trump family has taken majority control of WLFI, securing significant portions of net token sale revenues and future business operations. The lawmakers’ inquiry signals growing concerns over political entanglements in crypto regulation, especially around stablecoins. On March 6, Warren also called for transparency regarding White House “Crypto Czar” David Sacks’ profits on his crypto holdings, questioning his divestment before the start of Trump’s administration.
The lawmakers’ inquiry coincides with a House Financial Services Committee session on legislation regulating stablecoins on April 2. They have raised concerns about potential conflicts of interest and safeguards to prevent them from shaping SEC actions amid what they call “unprecedented financial ties to the crypto industry.” This comes amidst structural changes at the SEC under Chairman Mark Uyeda, including a shift in enforcement stance and the formation of a task force led by Commissioner Hester Peirce to improve collaboration with the industry.
World Liberty Financial announced plans to launch USD1 stablecoin on March 25, prompting Warren and Waters to request the SEC to preserve communications from the Trump White House and provide records involving Trump family members and their business partners. The lawmakers also question the SEC’s handling of its recent case against Justin Sun, who has become a major investor in WLFI. The regulator paused enforcement action against Sun’s affiliated companies on Feb. 27, raising further questions about potential conflicts of interest in the industry.
The Trump Organization announced in January that the president’s business interests would be placed in a trust managed by his children to oversee potential ethical concerns. A White House spokesperson reiterated that there are no conflicts of interest. Warren and Waters’ letter seeks information on various categories, including internal communications regarding Trump’s involvement in crypto, records on WLFI’s stablecoin initiative, and SEC’s dealings with Justin Sun. The SEC has not publicly responded to the lawmakers’ request yet.
