The Trump family, linked to U.S. President Donald Trump, has reduced its stake in the cryptocurrency project World Liberty Financial (WLF) amid mounting political scrutiny.
Reduction of Trump's Stake in WLF
According to *Forbes*, the holding company DT Marks DeFi LLC, controlled by the Trump family, has reduced its ownership in WLF from 75% in December 2024 to 60% in January. The latest update on WLF’s website, dated after June 8, shows that stake has now dropped to 40%. It is unclear whether the Trump family sold shares or diluted their ownership through other means, but *Forbes* estimates any divestment could have generated millions of dollars.
Political Context and Legislation
This reduction comes as lawmakers escalate calls for oversight of the president's crypto dealings. In March, WLF launched its own USD-pegged stablecoin, USD1, just as Congress advanced the GENIUS Act, a sweeping bill that aims to bring stablecoins under federal regulation. The Act cleared the Senate last week with bipartisan support and now heads to the House. Despite the controversy, Trump has publicly endorsed the legislation, urging House Republicans to pass the bill 'ASAP.'
Market Impact and Criticism
WLF has attracted attention not just for the Trump name. In May, a UAE-based firm announced plans to use WLF’s USD1 token to settle a $2 billion investment in Binance, one of the largest crypto exchanges in the world. As of March, WLF had raised $550 million through public token sales. Trump personally disclosed more than $57 million in income from the venture in financial filings submitted in June. Critics argue that the president’s deep involvement in the crypto industry creates serious conflicts of interest as he seeks to change digital asset policy through executive action and legislation driven by his party in Congress.
The Trump family's reduction in ownership of WLF amid growing political scrutiny raises questions about the implications of his family's business dealings on the crypto market and associated conflicts of interest.
