Sen. Elizabeth Warren and Rep. Maxine Waters are raising concerns about potential political interference in the US Securities and Exchange Commission’s (SEC) enforcement actions related to the Trump family’s crypto interests. In a joint letter addressed to Acting SEC Chair Mark Uyeda, the two Democratic lawmakers requested clarity on the agency’s interactions with World Liberty Financial (WLF), a crypto firm with close ties to President Donald Trump’s family.
The letter emphasized the need for the SEC to preserve all internal communications and records pertaining to WLF and any enforcement decisions involving the firm. Warren and Waters highlighted WLF’s recent disclosure of over $500 million in exempt securities sales of its governance token, $WLFI, as well as its plans to launch a stablecoin called USD1. They pointed out that the Trump family stands to benefit significantly from WLF’s profits, with an estimated $400 million stake in the firm.
Describing this arrangement as an “unprecedented conflict of interest,” the lawmakers expressed concerns that it could incentivize the Trump administration to influence federal crypto oversight to benefit the president’s family financially. They also criticized the SEC for pausing its enforcement case against Justin Sun, a controversial crypto entrepreneur and a major investor in WLF. Sun had been charged with market manipulation and unregistered securities sales by the SEC in 2023.
Warren and Waters questioned the regulatory impartiality of the SEC’s decision to halt the enforcement action against Sun, particularly in light of his significant investments in WLF. They raised suspicions about potential political pressure from Trump-aligned interests influencing regulatory policy within the agency.
World Liberty Financial’s rapid rise in the crypto space, backed by high-profile investors and ambitious token offerings, has placed the firm at the center of debates surrounding crypto regulation and political influence. Warren and Waters called on the SEC to provide a comprehensive account of its engagement with WLF and any enforcement discussions involving individuals connected to the company.
“The American people deserve transparency to ensure that financial markets are regulated impartially and that regulatory decisions are not being made to serve the financial interests of the President’s family,” the lawmakers asserted in their letter to the SEC.
The ongoing scrutiny of potential political interference in crypto regulation underscores the need for regulatory agencies to uphold transparency and independence in their enforcement actions. Warren and Waters’ efforts to hold the SEC accountable for any perceived conflicts of interest reflect a broader commitment to safeguarding the integrity of financial markets and regulatory decision-making processes.