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Democratic Lawmakers Urge SEC to Preserve Records on Trump Crypto Venture

By  |  April 2, 2025
Democratic Lawmakers Urge SEC to Preserve Records on Trump Crypto Venture

Two leading Democratic lawmakers have called on the U.S. Securities and Exchange Commission (SEC) to retain records related to former President Donald Trump’s involvement in the cryptocurrency firm World Liberty Financial, raising concerns over potential conflicts of interest.

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    In a letter addressed to Acting SEC Chairman Mark Uyeda, obtained by Reuters, Senator Elizabeth Warren and Representative Maxine Waters sought information to clarify “the extent to which the Trump family’s financial interest in World Liberty Financial may be influencing your and the Commission’s activities.” The request follows a recent Reuters investigation that shed light on Trump’s deep financial ties to the crypto venture.

    According to Reuters, World Liberty Financial has secured over half a billion dollars in funding in recent months, with Trump’s family taking control of the project and receiving a substantial share of the proceeds. Governance structures within the company appear to favor insiders, per industry experts cited by Reuters. The report detailed how the Trump family currently claims 75% of net revenues from token sales and will hold a 60% stake in operations once the platform’s core decentralized finance business launches. This arrangement has reportedly entitled the Trump family to approximately $400 million in fees, according to Reuters.

    Despite these revelations, the ability of Democrats to formally investigate the matter is constrained by the Republican majority in both chambers of Congress. Without the power to call public hearings or mandate compliance, the lawmakers’ letter to the SEC does not carry legal authority to compel action. However, the request underscores growing scrutiny over Trump’s financial entanglements with the crypto industry.

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    A White House spokesperson responded to the inquiries, stating in an emailed message that “President Trump’s assets are in a trust managed by his children. There are no conflicts of interest.” The Trump Organization had previously announced in January that the former president’s investments and business interests would be placed in a trust and managed by his children, with an ethics adviser overseeing compliance to mitigate any potential conflicts.

    According to Reuters, the letter specifically asks the SEC to preserve and provide records of communications between the White House and the agency concerning World Liberty Financial. It names more than half a dozen Trump family members and business partners in its request and inquires about safeguards in place to prevent undue influence over SEC regulatory decisions.

    The inquiry comes as the House Financial Services Committee, led by Republicans, deliberates legislation to regulate the growing adoption of crypto stablecoins—an issue that the Trump White House had previously identified as a legislative priority. Additionally, the Democratic lawmakers are seeking information on World Liberty Financial investor Justin Sun, who reportedly invested $75 million and now serves as an advisor to the project. The letter requests records concerning the SEC’s recent decision to pause its legal action against Sun and his affiliated companies.

    Source: Reuters