Eric Trump, initially set to be appointed as a director at fintech firm Alt5 Sigma, has changed his role to an observer position to comply with Nasdaq rules.
Change in Role at Alt5 Sigma
According to a U.S. Securities and Exchange Commission (SEC) filing, the change in Trump's status occurred on August 25, 2025, and was reported on September 9. This revision also affects Zak Folkman, Chief Operating Officer of crypto startup World Liberty Financial.
Deal Structure and Holdings
On August 28, Alt5 Sigma announced plans to raise $1.5 billion to purchase digital tokens from World Liberty Financial, the creator of the $WLFI token. Trump, through DEFI LLC, holds approximately 38% of World Liberty Financial and 22.5 billion $WLFI tokens. Alt5 Sigma has already acquired 7.3 billion tokens at a price of $0.18 each.
Compliance with Nasdaq Rules
Appointing high-profile figures to the board of a publicly traded firm requires adherence to strict rules to protect investor interests and ensure board independence. This scenario underscores that as the digital asset industry matures, regulatory bodies will continue to enforce compliance with relevant standards.
The changes in Eric Trump's appointment highlight the strict adherence to Nasdaq rules in the context of the growing interest in digital assets and their regulation.
