On April 2, Sen. Elizabeth Warren and president Maxine Waters requested that the Securities and Exchange Commission (SEC) preserve and provide records related to World Liberty Financial (WLFI), a family-backed defi venture.
A letter to acting chairman Mark Weda questioned potential conflicts of interest caused by his Trump family’s involvement in the project, according to a Reuters report.
The letter also seeks information on whether the Trump family’s financial relationships have financial connections to their impact with SEC policies or enforcement decisions.
WLFI under investigation
The move comes in reports that Trump’s family is supposed to control a majority of WLFIs. They secured 75% of net token sales revenue and 60% of future business operations, earning a fee of around $400 million.
The letter does not have legal authority to force action from the SEC, but concerns about political entanglement in crypto regulations have risen amid wider legislative efforts over stubcoin.
Warren also released a letter on March 6th calling for transparency on the profits of White House “Crypto Czar” David Sacks’ Crypto Holdings.
The letter continued to a Statement of March 2nd When Sack revealed that he had sold all his holdings, including Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) before the start of the Trump administration.
Additionally, the letter questioned the Sacks’ profits by selling its position in Bitwise’s 10 Crypto Index Fund.
Lawmakers question the independence of the SEC
The lawmaker’s investigation coincides with the House Financial Services Committee session on April 2nd on the Act regulating the issuance and use of Stablecoins. The Trump administration has shown that stubcoin regulation and integration is a policy priority.
Waters said during the session he would oppose the bill unless provisions added to block Trump or his affiliates from owning the Stablecoin issuer.
She added:
“With this ridiculous bill, this committee is setting an unacceptable and dangerous precedent and examining the efforts of the President and his insiders to write road rules that enrich themselves at the expense of everyone else.”
World Liberty Financial announced plans to launch USD1, a stablecoin, which will be charged in US dollars on March 25th.
In the letter, Warren and Waters requested that the SEC preserve communications from the Trump White House and provide records that include more than half a dozen Trump families and their business partners.
The lawmaker also asked what safeguards exist, if any, to prevent conflicts of interest from shaping SEC’s actions, in light of what is known as “unprecedented financial ties with the crypto industry.”
Further enforcement questions
This study further highlights recent structural changes in the SEC. Under former chairman Gary Gensler, the committee took a proactive enforcement stance towards code.
Uyeda’s tenure coincided with changes in attitudes, including downsizing the agency’s crypto enforcement unit and creating a task force aimed at improving collaboration with the industry.
The group is led by Commissioner Hester Perth, known by the community as “Crypto Mom” ​​in her favourable attitude towards Crypto.
Lawmakers also questioned the SEC’s recent handling of the incident against Justin Sun. Justin Sun has emerged as a leading investor and advisor to Liberty Financial around the world. Regulator The enforcement action has been suspended. against Sun and his affiliates on February 27th.
The Trump organization announced in January that the president’s business interests will be placed in the trust he manages by his children, and that an independent lawyer will oversee potential ethical concerns.
A White House spokesman reiterated, “President Trump’s assets are the trust that his children manage. There is no conflict of interest.”
The Warren and Waters letter seeks information in nine categories, including internal communications regarding Trump’s involvement with Crypto, records on World Liberty Financial’s USD1 Stablecoin initiative, and documents on SEC’s dealing with Justin Sun.
The SEC has not publicly responded to lawmakers’ requests.
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