Two Democratic lawmakers in the US Senate and House of Representatives have called on acting Securities and Exchange Commission (SEC) Chair Mark Uyeda to preserve information regarding World Liberty Financial, the crypto firm backed by President Donald Trumpโs family.
In an April 2 letter, Senator Elizabeth Warren and Representative Maxine Waters โ ranking members of the Senate Banking Committee and House Financial Services Committee, respectively โ asked Uyeda to provide information to Congress based on Trumpโs ties to World Liberty Financial (WLFI). The two lawmakers suggested the SEC may be being influenced by the firm, and โthis conflict of interest may be interfering with its mission to protect investors and maintain fair and orderly markets.โ
โThe Trump familyโs financial stake in World Liberty Financial represents an unprecedented conflict of interest with the potential to influence the Trump Administrationโs oversight โ or lack thereof โ of the cryptocurrency industry, creating an obvious incentive for the Trump Administration to direct federal agencies, including the SEC, to take positions favorable to cryptocurrency interests that directly benefit the President’s family,โ said the letter.
April 2 letter to acting SEC chair Mark Uyeda. Source: House Financial Services Committee
The letter came roughly a week after WLFI announced it had launched a stablecoin, USD1, on the BNB Chain and Ethereum blockchain. However, since January, Trump has followed through with several crypto policies and projects with potential conflicts of interest, including plans to establish a national cryptocurrency stockpile and the launch of a TRUMP memecoin.
Related: Crypto has a regulatory capture problem in Washington โ Or does it?
According to Warren and Waters, Americans deserved transparency about Trumpโs crypto ventures and how they could potentially influence policy at the SEC, a financial regulatory agency largely intended to be independent of the administration. The two called on Uyeda to preserve records and communications related to WLFI from Trump and his family, as well as communications with the SEC.
โThe American people deserve to know whether their financial markets are being regulated impartially or whether regulatory decisions are being made to benefit the President’s family financial interests,โ wrote the Democratic lawmakers.
The letter reiterated arguments Waters made in an April 2 House Financial Services Committee hearing. The California lawmaker said that without oversight and accountability, Trump could install WLFIโs stablecoin for government payments and profit directly from his position as president. Many other lawmakers and financial experts across the political spectrum have expressed concern over Trumpโs potential conflicts of interest with the crypto industry.
SEC leadership under Trump
Since Trump appointed Uyeda as acting chair, the SEC has dropped investigations and enforcement actions into several crypto firms, including those with executives who contributed directly to the presidentโs 2024 campaign.
Paul Atkins, Trumpโs pick to chair the SEC after Uyeda, is expected to face a vote in the Senate Banking Committee on April 3. If Atkinsโ nomination moves out of committee, the full chamber will decide whether to confirm him.
Magazine: Trumpโs crypto ventures raise conflict of interest, insider trading questions
