A Crypto Payment Day of $ 400 million that is linked to the Trump family is now the focus of an escalating political Firestorm, one that according to legislators could endanger the integrity of American financial regulations.
Senator Elizabeth Warren (D-Ma) and Rep. Maxine Waters (D-CA) A joint letter to SEC-IMMIDANCE MARK UYEDA demanding “All data and communication with regard to World Liberty Financial, Inc.”, the crypto company founded by Trump Associates and heavily promoted by President Donald Trump’s family.
In a destruction Letter from four pagesThe best legislators in the Senate Bank and House Financial Services Committees said that the deep financial involvement of the family at the company “represents an unprecedented conflict of interest with the potential to influence the supervision of the Trump administration – or the lack of it – of the cryptocurrency industry.”
The letter insists on storing and providing records that date from October 15, 2024, when WLFI started selling its $ wld -to -smugning through an exempt supply supply that has already raised $ 550 million.
Sec -archives and research report Show WLF is closely linked to Donald Trump, Donald Trump Jr. and Eric Trump via an entity called DT Marks Defi LLC.
The Trump family has a claim on 75% of token income, one Estimated payment of $ 390 million To date, and 60% of the future income from operations.
The legislators also doubted the abrupt decision of the SEC to pause his enforcement case against Tron founder Justin Sun, who as an investor, Goot $ 75 million In WLFI after being accused of fraud in 2023.
Under acting chairman Mark Uyeda, the SEC has been rotated from aggressive enforcement to a more hands-off approach, pause or Multiple crypto -rights dropsIncluding things against Coinbase, Kraken, Uniswap Labs and OpenSea, among other things.
In February, the sec paused The case against Sun, which is concerned about regulatory favoritism.
Warren and Waters asked the SEC to keep “all internal memoranda that justified the first enforcement decision”, including data on meetings and communication between SEC -officials and representatives of Justin Sun or the Trump family.
The legislators also asked to retain the “communication, suggestions or guidelines” of the White House or Trump family, if present, to the SEC with regard to WLFI or Sun’s case, and whether the agency consulted with ethical officials with regard to the crypto investments of the Trump family.
Stablecoin mood sparks partisan collision in the midst of Trump tires
Tensions around Trump’s Crypto tires broke out on Wednesday on Capitol Hill as the Huis Financial Services Committee passed the stable law in a vote of 32-17 – a bill that would create a regulatory framework for stablecoins.
The WLFI supported by Trump announced the launch of his Stablecoin, USD1 only a few days earlier, while legislators prepared to vote on the legislation, an overlap that further Food worries About political influence.
Democrats proposed changes to ban the president and top officials to launch such financial products during office. All were rejected by the Republican majority.
Against this background, Warren and Waters concluded their letter: “The American people deserve it to know whether their financial markets are impartially regulated or whether regulatory decisions are made to benefit the financial interests of the president.”
The SEC has until April 14 to respond. Until then, the debate on Crypto Regulation, now confused with accusations of presidential interests, has no signs of cooling.
Published by Sebastian Sinclair
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