Lawmakers demand answers on Trump’s crypto connections
Senator Elizabeth Warren and Representative Maxine Waters raise concerns over conflicts of interest in the SEC’s handling of crypto enforcement.
The US lawmakers are intensifying their scrutiny of President Donald Trump’s ties to the cryptocurrency industry. Concerns over conflicts of interest and regulatory transparency continue to grow.
Senator Elizabeth Warren (D-MA) and Representative Maxine Waters (D-CA) sent a letter to SEC Acting Chair Mark Uyeda on 2 April. They demanded records on World Liberty Financial, Inc. (WLFI), a crypto firm linked to the Trump family.
The firm has raised millions and sparked allegations of potential bias in the SEC’s handling of crypto enforcement.
The letter details the Trump family’s significant financial stake in WLFI. They hold a 75% claim to token revenue, which has already earned them an estimated $390 million.
Lawmakers expressed concern about the SEC’s lack of action on the firm. They worry that the broader crypto market could be influenced by the Trump family’s financial interests.
In particular, they questioned the SEC’s sudden decision to pause its enforcement case against Tron founder Justin Sun, who also invested heavily in WLFI.
The concerns are compounded by the launch of WLFI’s stablecoin, USD1. It occurred shortly before lawmakers voted on relevant legislation, which they argue could indicate undue political influence.
The SEC has until 14 April to respond. The debate over crypto regulation is likely to intensify as the investigation continues.
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