Senators Demand SEC Records on Trump Family's DeFi Venture
2min read On April 2, Senator Elizabeth Warren and Representative Maxine waters sent a letter to the US Securities and Exchange Commission (SEC) requesting the preservation and provision of records related to World Liberty Financial (WLFI), a decentralized finance (DeFi) venture backed by the Trump family. The letter, addressed to acting SEC Chairman Mark Uyeda, raises concerns about potential conflicts of interest arising from the Trump family's involvement in the project.
The lawmakers seek information on whether the Trump family's financial ties to wlfi influence SEC policy or enforcement decisions. This move comes as reports indicate that the Trump family has assumed majority control of WLFI, securing 75% of net token sale revenues and 60% of future business operations, which could entitle them to roughly $400 million in fees.
While the letter does not have legal authority to compel action from the SEC, it underscores growing concerns over political entanglements in crypto regulation, especially amid broader legislative efforts around stablecoins.
Warren had previously called for transparency regarding White House “Crypto Czar” David Sacks’ profits on his crypto holdings. In a letter dated March 6, Warren questioned Sacks’ profit from divesting his position in Bitwise’s 10 Crypto Index Fund, to which he had exposure through the venture fund he co-founded, Craft Ventures.
This inquiry coincides with a House Financial Services Committee session on legislation regulating the issuance and use of stablecoins on April 2. Waters stated during the session that she would oppose the bill unless provisions are added to block Trump or his affiliates from owning a stablecoin issuer. She expressed concern that the bill could set a dangerous precedent, validating the president and his insiders’ efforts to enrich themselves at the expense of others.
World Liberty Financial announced plans on March 25 to launch USD1, a US dollar-pegged stablecoin. In their letter, Warren and Waters requested that the SEC preserve communications from the Trump White House and provide records involving more than half a dozen Trump family members and their business partners. They also asked about safeguards to prevent conflicts of interest from shaping SEC actions.
The inquiry highlights recent structural changes at the SEC. Under former chair Gary Gensler, the Commission took an aggressive enforcement stance toward crypto. However, under Uyeda’s tenure, there has been a shift in posture, including downsizing the agency’s crypto enforcement unit and forming a task force intended to improve collaboration with the industry.
The lawmakers also questioned the SEC’s handling of its recent case against Justin Sun, a major investor in and advisor to World Liberty Financial. The regulator paused its enforcement action against Sun and his affiliated companies on Feb. 27.
The Trump Organization announced in January that the president’s business interests would be placed in a trust managed by his children and that an independent attorney would oversee potential ethical concerns. A White House spokesperson reiterated that “President Trump’s assets are in a trust managed by his children. There are no conflicts of interest.”
Warren and Waters’ letter seeks nine categories of information, including any internal communications regarding Trump’s involvement in crypto, records concerning World Liberty Financial’s USD1 stablecoin initiative, and documents related to the SEC’s dealings with Justin Sun. The SEC has not publicly responded to the lawmakers’ request.
Ask Aime: Why does Sen. Elizabeth Warren and Rep. Maxine Waters request SEC to preserve records of World Liberty Financial?
