Trump family cuts stake in World Liberty Financial to 40% amid conflict concerns
Trumps reduce stake in WLFI amid crypto scrutiny
As cryptocurrency regulation gains momentum in Washington, the Trump family has discreetly reduced its stake in World Liberty Financial (WLFI), a crypto company behind the rising stablecoin USD1.
Once a 75% majority shareholder through DT Marks DeFi LLC, the Trump-controlled entity had reduced its stake to 40% as of mid-June, according to Forbes.
Trump's cryptostrategy
The WLFI holding reduction time coincides with mounting scrutiny over the family’s crypto interests and their influence on pending legislation, particularly the GENIUS Act, a stablecoin regulation bill championed by Donald Trump himself. The lack of clarity around the divestment — including who acquired the shares or at what valuation — has only heightened political tensions and market speculation.
USD1’s growth and political entanglements
Even as the Trumps stepped back from WLFI, the company’s flagship product — USD1, a U.S. dollar-pegged stablecoin — has surged to prominence. It is now the fifth-largest stablecoin by market capitalization, reaching over $2.2 billion, according to CoinMarketCap.
A $2 billion transaction involving the President of the UAE using USD1 and its recent minting on the Tron blockchain, run by crypto mogul Justin Sun, have amplified the project’s visibility. Sun, a significant investor in WLFI and the largest holder of the Trump-themed TRUMP meme coin, has become a central figure in the network of affiliations surrounding WLFI.
Loading...
Conflict concerns could impact legislation
As the GENIUS Act advances, Senators Elizabeth Warren and Jeff Merkley have voiced concerns that the Trump family’s financial ties to WLFI could represent a conflict of interest. Critics worry this connection might influence the legislation’s impartiality or enforcement, potentially delaying its progress in the House despite strong bipartisan support in the Senate.
The Trump family’s evolving role in the crypto world reflects both their growing influence and the increased regulatory scrutiny now surrounding digital assets. With stablecoins at the heart of emerging policy, the next few months could determine whether political ties derail or reshape the industry’s legal framework.
We previously wrote that World Liberty Financial airdrops $47 in USD1 to early WLFI holders.
