The Trump family’s growing involvement in crypto is once again under the spotlight – this time for scaling back. As their company, World Liberty Financial (WLF), expands its presence in the crypto market, a quiet but major reduction in ownership is raising questions about political influence, timing, and potential conflicts of interest.
With crypto regulation heating up and the GENIUS Act moving forward, every move by the Trumps is being closely watched.
According to a Forbes report, DT Marks DeFi LLC, a company controlled by the Trump family, held a 75% stake in WLF as of December 2024. But by January, WLF’s website listed its ownership at “approximately 60%.” Then, after June 8, that number dropped again to 40%.
While it’s unclear how profitable the sale was, Forbes estimates the proceeds could have reached millions. The lack of details has only added to the mystery around the Trumps’ crypto strategy.
At the same time, WLF’s stablecoin, USD1, pegged 1:1 to the U.S. dollar, has quickly become a major player. According to CoinMarketCap, it’s now the fifth-largest stablecoin, with a market cap of over $2.2 billion.
Its rise got a major boost when the President of the UAE used USD1 for a $2 billion investment into Binance. And on June 11, USD1 was also minted on the Tron blockchain, which is run by crypto billionaire Justin Sun. Sun is not only a major investor in WLF but also the biggest holder of the Trump-themed TRUMP meme coin. He even attended an exclusive event earlier this year for the coin’s top holders.
These connections have only added fuel to the controversy.
Trump has been pushing for Congress to pass the GENIUS Act, a bill focused on stablecoin regulation that recently cleared the Senate with strong bipartisan support. But the path ahead in the House could be more difficult.
Senators Elizabeth Warren and Jeff Merkley have raised concerns about Trump’s financial links to WLF and other crypto assets. They argue his influence could create a conflict of interest and affect the fairness of future crypto laws. That could slow the GENIUS Act’s progress as lawmakers call for more safeguards.
The Trump family’s reduced stake in World Liberty Financial comes just as their stablecoin project takes off and regulation efforts gain momentum in Washington.
Their influence in the crypto world is growing but so is the scrutiny. As the GENIUS Act moves closer to a final vote, the spotlight on the Trumps’ crypto dealings is only getting brighter.
The reduction in the Trump family’s stake in World Liberty Financial could suggest several things: profit-taking as the stablecoin gains traction, a strategic move to de-risk ahead of increasing regulatory scrutiny, or an attempt to mitigate perceived conflicts of interest as crypto legislation progresses in Washington.
The rapid growth of USD1, especially with high-profile investments, amplifies its influence in crypto regulation debates. It highlights the need for clear stablecoin frameworks like the GENIUS Act but also intensifies scrutiny on its governance, reserves, and political ties, potentially shaping how future laws address politically-affiliated digital assets.
The timing is significant because the stake reduction happened just as USD1’s market cap soared and the GENIUS Act, a stablecoin regulation bill Trump supports, gained momentum in Congress. This timing raises questions about whether the reduction is a strategic response to avoid further conflicts of interest accusations and scrutiny over their crypto dealings.
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