Two Democratic legislators have requested the U.S. Securities and Exchange Commission regarding World Liberty Financial due to potential conflicts of interest.
Concerns Over Trump Family’s Influence
Senator Elizabeth Warren and Representative Maxine Waters raised concerns about potential conflicts of interest arising from the Trump family’s involvement in the project. According to their letter, they question whether financial ties might influence SEC's activities under acting Chair Mark Uyeda.
SEC’s Decision on Justin Sun’s Case
The letter also scrutinized the regulator’s February decision to pause its case against Justin Sun, who invested $75 million into WLFI. The lawmakers requested all internal memoranda justifying the initial enforcement decision, as well as records of meetings and communications between SEC officials and representatives of Sun or the Trump family.
Discussions on Stablecoin Regulation
The inquiry follows an April 2 House Financial Services Committee session on stablecoin regulation. Waters opposed the bill unless it included provisions preventing the Trump family from owning a stablecoin issuer.
The legislators' request for information from the SEC highlights the importance of ensuring transparency and impartiality in financial market regulation, especially regarding the influence of political figures.
