Two Democrat US Lawmakers have sent a letter to the Securities and Exchange Commission (SEC) acting chair, Mark Uyeda, asking about President Donald Trump’s crypto businesses and potential conflicts of interest related to the Commission’s regulations.
US SEC Asked About Trump’s Crypto Businesses
On Wednesday, Senator Elizabeth Warren and Representative Maxine Waters asked the SEC’s acting chair about potential conflicts of interest and whether President Trump’s financial ties to the crypto industry through World Liberty Financial (WLFI) have influenced the Commission’s and Uyeda’s decision-making.
Sen. Warren and Rep. Waters' letter to the SEC acting chair. Source: Banking Senate Committee
The letter cites a recent investigation by Reuters, alleging that the US President, Donald Trump Jr., and Eric Trump are “directly affiliated with WLF, which has already raised over $500 million through token sales through an exempt securities offering.”
The report also states that the presidential family “has a claim on 75% of net revenues from those sales,” meaning they could benefit up to $400 million from their crypto venture.
As such, the lawmakers argue, “The Trump family’s financial stake in World Liberty Financial represents an unprecedented conflict of interest with the potential to influence the Trump Administration’s oversight—or lack thereof—of the cryptocurrency industry, creating an obvious incentive for the Trump Administration to direct federal agencies, including the SEC, to take positions favorable to cryptocurrency interests that directly benefit the President’s family.”
Senator Warren and Representative Waters requested the SEC Chair to “preserve and provide” copies of all records and communications regarding WLFI at the Commission from October 15, 2024, until the present by April 14, 2025.
In the letter, they also inquired about all records and communications related to the SEC’s decision to pause its case against Tron founder Justin Sun and his affiliated companies, citing his $75 million investment into WLFI as a concern.
Trump Family Denies Conflicts Of Interest
In a statement shared with Reuters, a spokesperson for World Liberty Financial stated, “It’s disappointing that Senator Warren is attempting to weaponize the power of the government to continue to harass and target the Trump family and our project.”
“What’s implied in the letter is completely disgusting, false, and dangerous. She has been a vocal and consistent opponent of the crypto industry for years, but Luddites with political vendettas won’t stop us from building and deploying a world-class platform that can benefit millions,” the spokesperson added.
As reported by Bitcoinist, Eric Trump, son of the US President, recently denied the White House involvement in the Family’s crypto ventures, affirming there are “virtually none” conflicts of interest in a Bloomberg interview.
He stated that President Trump “fell in love with an industry because the regulators were going after that industry (…) the exact same way as they were going after our family.” Meanwhile, a spokesperson for the SEC revealed in a statement to Reuters that, “Acting Chairman Uyeda will respond to Members of Congress directly.”
It is worth noting that Senator Warren sent two letters last month questioning the Commission’s chairman nominee, Paul Atkins, and the White House AI and Crypto Czar, David Sacks, regarding potential conflicts of interest and their ties to President Trump, which both have denied.
Additionally, she has criticized the SEC’s regulatory shift and the agency’s decision to pause or dismiss most of its major crypto litigations and investigations, including Coinbase, Binance, Gemini, Robinhood, and Ripple.
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