Democrats Request SEC to Preserve Records on Trump’s Crypto Business
By Lawrence Delevingne, Michelle Conlin, Tom Wilson, and Tom Bergin
April 2, 2025
In a move signaling increased scrutiny of President Donald Trump’s financial ventures, key Democratic lawmakers have formally asked the U.S. Securities and Exchange Commission (SEC) to preserve records related to Trump’s cryptocurrency enterprise, World Liberty Financial. As the political landscape remains polarized, the request raises questions about potential conflicts of interest impacting the Commission’s regulatory approach towards the rapidly evolving crypto sector.
Request for SEC Records
In a letter sent Wednesday to acting SEC Chairman Mark Uyeda, U.S. Senator Elizabeth Warren, who serves as the ranking member of the Senate Banking Committee, and Representative Maxine Waters, ranking member of the House Financial Services Committee, outlined their concerns. They expressed a desire to "better understand" how the Trump family’s substantial financial interests in World Liberty Financial could potentially affect SEC operations.
The letter was precipitated by a recent report from Reuters, which detailed how Trump’s family has garnered significant control over World Liberty Financial—a venture that reportedly raised over half a billion dollars in recent months. According to these reports, the Trump family has claims on 75% of revenue from the company’s token sales and 60% from its operations, translating to an estimated $400 million in fees.
Context of Trump’s Financial Interests
Democrats have focused on Trump’s connections to World Liberty Financial due to the cryptocurrency industry’s ongoing regulatory challenges and ethical concerns surrounding Trump’s financial dealings. The Trump Organization announced in January that Trump’s investments and business interests would be held in a trust managed by his children, ensuring he would have no influence on day-to-day operations. A White House spokesperson reaffirmed that Trump’s assets are managed in a manner designed to avoid conflicts of interest.
However, lawmakers remain skeptical of this arrangement, prompting their request for a detailed examination of communications between the SEC and the White House regarding Trump’s financial activities in the crypto space.
SEC’s Stance on Cryptocurrency
The SEC’s current leadership presents a complex backdrop for these developments. Under President Biden, the agency initially took a firm approach to regulating cryptocurrencies, led by Gary Gensler. However, acting Chairman Uyeda has inaugurated a task force aimed at fostering cooperation with the crypto industry, suggesting a shift in tone. This task force is overseen by Republican Commissioner Hester Peirce, who is known for her favorable stance towards the cryptocurrency sector.
Broader Implications for Crypto Legislation
As Congress discusses new legislation to regulate stablecoins, the implications of Trump’s involvement in World Liberty Financial could have far-reaching consequences. During a committee meeting on Wednesday, Waters stated that she could not support any stablecoin legislation that would allow Trump to operate a stablecoin business through World Liberty, emphasizing the potential dangers of "validating" rules that might benefit the President and his associates financially.
World Liberty Financial’s Planned Stablecoin
World Liberty recently announced plans to launch a U.S. dollar-pegged stablecoin named USD1. This move aligns with Trump’s broader agenda of promoting cryptocurrency and its acceptance within the financial system. The project’s backers, including investor Justin Sun, have yet to respond to inquiries regarding their relationship with the Trump family and the implications of such ties.
While the SEC was asked to preserve relevant documents, it remains unclear whether the agency will comply with the Democrats’ requests or how the situation will evolve in light of the prevailing Republican majority in both chambers of Congress, which could limit the Democrats’ investigative powers.
Conclusion
As the inquiry into World Liberty Financial continues, its implications for Trump’s influence on the cryptocurrency industry and regulatory actions taken by the SEC may unfold over time. The situation underscores the intersection of politics and finance, particularly as lawmakers navigate the intricacies of cryptocurrency regulation amidst conflicting interests.
Reporting by Lawrence Delevingne in Boston, Michelle Conlin in New York, Tom Wilson and Tom Bergin in London; Editing by Tom Lasseter, Nick Zieminski, and Diane Craft
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