Democratic lawmakers are urging the SEC to release documents regarding World Liberty Financial, backed by the Trump family.

Senator Elizabeth Warren and Representative Maxine Waters have formally requested the US Securities and Exchange Commission (SEC) to preserve and provide records related to World Liberty Financial (WLFI), a DeFi venture supported by President Donald Trump’s family, on April 2.

A letter addressed to acting SEC Chairman Mark Uyeda raises concerns about potential conflicts of interest arising from the Trump family’s association with the project. The letter also seeks information on whether the financial connections between the Trump family and World Liberty Financial influence SEC policies or enforcement actions.

WLFI scrutiny

Reports have surfaced claiming that Trump’s family now holds majority control of WLFI, securing 75% of net token sale revenues and 60% of future business operations, which could result in fees of up to $400 million.

While the letter does not have the legal authority to compel the SEC to take action, it underscores the growing concerns about political influences in crypto regulation, especially amid ongoing legislative efforts related to stablecoins.

Warren also published a letter on March 6 requesting transparency regarding White House “Crypto Czar” David Sacks’ profits from his crypto holdings.

The letter came after a March 2 statement by Sacks, where he disclosed selling all his holdings, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), before the commencement of the Trump administration. The letter also questioned Sacks’ profit from divesting his position in Bitwise’s 10 Crypto Index Fund, to which he had exposure through Craft Ventures, a venture fund he co-founded.

Lawmakers raise concerns about SEC independence

The lawmakers’ inquiry coincides with a House Financial Services Committee session on the regulation of stablecoins issuance and use on April 2.

The Trump administration has emphasized stablecoin regulation and integration as a policy priority for the White House.

During the session, Waters stated she would oppose the bill unless provisions are included to prevent Trump or his affiliates from owning a stablecoin issuer, adding, “With this stablecoin bill, this committee is setting an unacceptable and dangerous precedent, validating the president and his insiders’ efforts to write rules of the road that will enrich themselves at the expense of everyone else.”

World Liberty Financial announced plans on March 25 to launch USD1, a stablecoin pegged to the US dollar.

In their letter, Warren and Waters requested the SEC to retain communications from the Trump White House and provide records involving several Trump family members and their business partners. The lawmakers also inquired about safeguards, if any, to prevent conflicts of interest from influencing SEC actions due to what they termed as “unprecedented financial ties to the crypto industry.”

Additional queries on enforcement

The inquiry sheds light on recent structural changes at the SEC. Under former chair Gary Gensler, the Commission took an assertive enforcement stance on crypto.

Uyeda’s tenure has seen a shift in posture, including downsizing the agency’s crypto enforcement unit and establishing a task force to enhance collaboration with the industry, led by Commissioner Hester Peirce, known as “Crypto Mom” for her supportive stance on crypto.

The lawmakers also questioned the SEC’s handling of its case against Justin Sun, who has become a significant investor in and advisor to World Liberty Financial. The regulator paused its enforcement action against Sun and his affiliated companies on Feb. 27.

In January, the Trump Organization announced placing the president’s business interests in a trust managed by his children under the oversight of an independent attorney to address potential ethical concerns. A White House spokesperson reiterated that “President Trump’s assets are in a trust managed by his children, with no conflicts of interest.”

Warren and Waters’ letter requests nine categories of information, including internal communications on Trump’s involvement in crypto, records related to World Liberty Financial’s USD1 stablecoin initiative, and documents outlining the SEC’s interactions with Justin Sun. The SEC has not publicly responded to the lawmakers’ request.

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