Senator Elizabeth Warren and representative Maxine Waters asked on 2 April that the US Securities and Exchange Commission (SEC) records retain and provide with regard to World Liberty Financial (WLFI), a Defi company supported by President Donald Trump family.
According to a report from Reuters, a letter that is addressed to Acting SEC chairman Mark Uyeda, possible conflicts of interest arising from the involvement of the Trump family in the project.
The letter is also looking for information about whether the financial ties of the Trump family with the financial influence of the World Vrijheid SEC policy or enforcement decisions.
WLFI under control
The move comes in the midst of reports that the Trump family has adopted the majority of the WLFI. They provided 75% of the income from the net token sale and 60% of future business activities, so that they are entitled to around $ 400 million in reimbursements.
Although the letter has no legal authority to force the SEC action, it gives up a growing concern about political complications in Crypto Regulation in the midst of broader legislative efforts around Stablecoins.
Warren also published a letter on March 6, which called for transparency with regard to the Witte House profit, “Crypto Czar” David Sacks on his crypto companies.
The letter followed one March 2 Statement For bags, when he revealed that he had sold all his companies, including Bitcoin (BTC), Ethereum (ETH) and Solana (SOL), before the start of the Trump government.
In addition, the letter doubted the profit of Sacks by repelling his position in the 10 crypto index fund of Bitwise, to which he had exposure through the durefonds that he co-founded, Craft Ventures.
Legislers ask for sec independence
The investigation of the legislators coincides with a session of the Huis Financial Services Committee on legislation that regulates the issue and use of Stablecoins on 2 April. The Trump administration has indicated that the regulation and integration of Stablecoin are a policy priority for the White House.
Waters stated during the session that it would oppose the account, unless provisions are added to block Trump or his affiliated companies from possessing a stablecoin emittent.
She added:
“With this Stablecoin bill, this committee forms an unacceptable and dangerous precedent and validates the president and efforts of his insiders to write the road rules that will enrich themselves at the expense of all others.”
World Liberty Financial announced plans on 25 March to launch USD1, a US Dollar Pegged Stablecoin.
In the letter, Warren and Waters asked to save the sec communication of the Trump -white house and to provide records with more than half a dozen Trump family members and their business partners.
The legislators also asked what guarantees, if present, to prevent conflicting conflicts from shaping SEC Actions in the light of what they called ‘unprecedented financial ties with the crypto industry’.
Further questions about enforcement
The research further emphasizes recent structural changes in the SEC. Under former chairman Gary Gensler, the committee took aggressive enforcement position against Crypto.
The term of office of Uyeda coincided with a shift in the attitude, including the reduction of the Crypto enforcement unit of the agency and the formation of a Task Force that was intended to improve cooperation with industry.
The group is led by Commissioner Hester Peirce, known to the community as “Crypto Mom” because of its favorable attitude towards Crypto.
The legislators also doubted the handling of the SEC of his recent case against Justin Sun, who emerged as an important investor and adviser to World Liberty Financial. The Regulator paused his enforcement action Against Sun and are affiliated companies on 27 February.
The Trump organization announced in January that the business interests of the president would be placed in a trust managed by his children and that an independent lawyer would supervise potential ethical care.
A spokesperson for the White House repeated that “President Trump’s assets are managed in confidence by his children. There are no conflicts of interest.”
Warren and Waters’ letter is looking for nine information categories, including internal communication with regard to the involvement of Trump in Crypto, data on the USD1 Stablecoin initiative of World Liberty Financial and documents with regard to the use of Justin Sun.
The SEC did not respond publicly to the request of the legislators.
