Trump’s Crypto Fortune Under Scrutiny – SEC Faces Pressure to Investigate

Washington, D.C. – Top Democratic lawmakers are calling for an in-depth investigation into President Donald Trump’s cryptocurrency venture, World Liberty Financial. They have formally asked the U.S. Securities and Exchange Commission (SEC) to preserve all records related to the company, raising concerns over possible conflicts of interest and lack of regulatory oversight.

Senator Elizabeth Warren and Representative Maxine Waters, both senior members of financial committees, sent a letter to acting SEC Chairman Mark Uyeda. Their request seeks to determine whether Trump’s personal financial stake in the company is influencing regulatory decisions. With Republicans controlling both chambers of Congress, Democrats have limited power to launch official inquiries, but they are bringing the issue into the public spotlight.

Trump’s Crypto Windfall Raises Alarm

World Liberty Financial has raised over $550 million from investors, but its financial structure is causing concern. Reports indicate that the Trump family now controls 75% of token sales revenue and will receive 60% of operational profits once the platform is fully launched. This setup could generate around $400 million in direct financial gains for the Trump family.

What makes this deal controversial is that much of the investment comes from large, private buyers purchasing $WLFI tokens in million-dollar increments. These tokens are currently non-tradable, meaning they can’t be sold on open markets. Some experts believe this raises red flags about the fairness and transparency of the investment process.

Democrats Question SEC’s Oversight

Democrats are pressing the SEC to disclose any records of White House communication regarding World Liberty Financial and to clarify how it is handling potential conflicts of interest. The lawmakers are particularly concerned about whether SEC actions have been influenced by Trump’s financial ties.

“When the President and his immediate family stand to gain hundreds of millions from an industry under SEC regulation, the public deserves full transparency on how the agency is maintaining its integrity,” the letter states.

The Trump Organization claims that the president’s business assets are held in a trust managed by his children and that an ethics adviser is in place to prevent conflicts. However, critics argue that this arrangement does little to ensure impartiality, particularly in the largely unregulated cryptocurrency space.

The Mystery Investors Behind World Liberty Financial

Among the key figures backing World Liberty Financial is crypto entrepreneur Justin Sun, who invested $30 million in $WLFI tokens shortly after Trump’s election win. His stake has reportedly grown to $75 million, and he now serves as an advisor to the company. Sun has been the subject of multiple legal disputes, including a U.S. securities fraud lawsuit, which raises further questions about the individuals involved in Trump’s crypto venture.

Meanwhile, the SEC’s stance on cryptocurrency has noticeably shifted. Under the Biden administration, former SEC Chair Gary Gensler took a tough approach to crypto enforcement. But since Trump took office, the agency—now led by acting Chairman Uyeda—has taken a friendlier stance toward the industry. The SEC has even downsized its crypto enforcement team, a move that some critics see as a sign of regulatory leniency.

Trump’s Crypto Ties and the Stablecoin Debate

On March 25, World Liberty Financial announced plans to launch a stablecoin called USD1, pegged to the U.S. dollar. The timing of this announcement has raised concerns, as Congress is currently debating new regulations for stablecoins. Lawmakers worry that Trump’s involvement in the sector could allow him to influence policy for personal financial gain.

During a House Financial Services Committee hearing, Representative Waters made it clear that she opposes any stablecoin legislation that would allow Trump to profit from the industry. “We cannot allow financial regulations to be written by those who stand to gain the most from them,” she said.

SEC Under Pressure to Act

As Trump expands his presence in the crypto industry, lawmakers are intensifying calls for oversight. The SEC now faces mounting pressure to clarify its regulatory approach and address concerns about potential favoritism.

The key question remains: Will the SEC take a firm stance to ensure fair oversight of Trump’s crypto empire, or will his financial ties shape the future of crypto regulation in the U.S.? As the debate continues, industry experts, lawmakers, and investors alike are watching closely.

Also Read: Trump Family Takes Over Crypto Firm: $550M Raised Under Scrutiny