Democrat lawmakers press SEC for records on Trump family-backed World Liberty Financial

Senator Elizabeth Warren and Representative Maxine Waters requested on April 2 that the US Securities and Exchange Commission (SEC) preserve and provide records related to World Liberty Financial (WLFI), a DeFi venture backed by President Donald Trump’s family.

According to a Reuters report, a letter addressed to acting SEC Chairman Mark Uyeda questions potential conflicts of interest stemming from the Trump family’s involvement in the project.

The letter also seeks information on whether the Trump family’s financial ties to World Liberty Financial influence SEC policy or enforcement decisions.

WLFI under scrutiny

The move comes amid reports that Trump’s family has assumed majority control of WLFI. They secured 75% of net token sale revenues and 60% of future business operations, entitling them to roughly $400 million in fees. 

While the letter does not carry legal authority to compel action from the SEC, it signals growing concern over political entanglements in crypto regulation amid broader legislative efforts around stablecoins.

Warren also published a letter on March 6 calling for transparency regarding White House “Crypto Czar” David Sacks’ profits on his crypto holdings.

The letter followed a March 2 statement by Sacks, when he revealed that he had sold all his holdings, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), before the start of Trump’s administration.

Additionally, the letter questioned Sacks’ profit by divesting his position in Bitwise’s 10 Crypto Index Fund, to which he had exposure through the venture fund he co-founded, Craft Ventures.

Lawmakers question SEC independence

The lawmakers’ inquiry coincides with a House Financial Services Committee session on legislation regulating the issuance and use of stablecoins on April 2. The Trump administration has indicated that stablecoin regulation and integration are a policy priority for the White House.  

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 added:

“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.”

World Liberty Financial announced plans on March 25 to launch USD1, a US dollar-pegged stablecoin.

In the 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.

The lawmakers also asked what safeguards, if any, exist to prevent conflicts of interest from shaping SEC actions in light of what they called “unprecedented financial ties to the crypto industry.”

Further questions on enforcement

The inquiry further highlights recent structural changes at the SEC. Under former chair Gary Gensler, the Commission took an aggressive enforcement stance toward crypto.

Uyeda’s tenure has coincided with 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 group is led by Commissioner Hester Peirce, known by the community as “Crypto Mom” for her favorable stance toward crypto.

The lawmakers also questioned the SEC’s handling of its recent case against Justin Sun, who has emerged as 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.

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