Exclusive: Democrats ask SEC to preserve records related to Trump’s crypto business, probing conflicts

Tom Bergin - Reuters - 02/04
A pair of top Democratic lawmakers asked the U.S. securities regulator on Wednesday to preserve records related to President Donald Trump’s crypto venture World Liberty Financial and posed questions about potential conflicts of interest.
  • Democrats question Trump's influence on SEC via World Liberty Financial
  • Trump family controls 75% of World Liberty's token revenues
  • SEC's crypto task force led by pro-crypto Commissioner Peirce
  • Democrats seek SEC records on Trump's crypto ties
  • World Liberty raised $550 mln, Trump family claims about $400 mln in fees
WASHINGTON, April 2 (Reuters) - A pair of top Democratic lawmakers asked the U.S. securities regulator on Wednesday to preserve records related to President Donald Trump’s crypto venture World Liberty Financial and posed questions about potential conflicts of interest.
In a letter sent to acting Securities and Exchange Commission Chairman Mark Uyeda, seen by Reuters, the lawmakers requested information to “help us better understand the extent to which the Trump family’s financial interest in World Liberty Financial may be influencing your and the Commission’s activities.”

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Senator Elizabeth Warren, the ranking member of the U.S. Senate’s banking committee, and Representative Maxine Waters, the ranking member of the U.S. House of Representatives’ financial services committee, signed the letter, which cited a Reuters report this week about the crypto project.
Republicans have a majority in both the U.S. House and Senate, which limits the ability of Democrats to call formal public hearings and conduct investigations. The Congressional members’ letter to the SEC does not cite any legal authority that would compel the agency to abide by its requests. It underlines the concern amongst Democratic lawmakers of the potential conflicts of interest due to the president’s businesses.
The House Financial Services Committee, led by Republicans, on Wednesday considered legislation that would regulate the broader adoption of crypto stablecoins. The Trump White House has identified promoting their use as a legislative priority.
Reuters published a story on Monday documenting how, as World Liberty Financial raised more than half a billion dollars in recent months, Trump’s family took control of the crypto venture and grabbed the lion’s share of those funds, aided by governance terms that industry experts say favor insiders.
Overall, the Trump family now has a claim on 75% of net revenues from token sales of World Liberty, and 60% from operations once the core “decentralized finance” business gets going. The ...
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