Trump Family Reduces Stake In WLFI Amid Conflict of Interest Backlash
Highlights
- The Trump family has reportedly cut its stake in World Liberty Financial from 60% to 40%.
- This comes amid backlash over the president's active involvement in crypto.
- Democrats have called for legislations to prohibit the president's involvement in crypto.
The Trump family has reportedly reduced its stake in its major crypto venture, World Liberty Financial (WLFI). This development comes amid criticisms from majorly Democrats over Donald Trump’s involvement in crypto and how this brings about a conflict of interest in his public service.
Trump Family Cuts Stake In WLFI To 40%
According to a Forbes report, one of Trump’s companies has reduced its stake in the DeFi project from 60% to 40% in the last 11 days. The president and his family had unveiled the project just before the US presidential elections in November last year.
The Trump family actively promoted the project’s token sale, with the president making an official announcement from his Mar-a-Lago residence in Florida. Forbes revealed that 75% of the proceeds after the first $30 million went to Trump and his family members.
The Trump family’s move to reduce their stake in World Liberty Financial comes amid criticism over the president’s involvement in crypto. Rep Maxine Waters had gone as far as introducing a bill, the ‘Stop Trump in Crypto Act’, which didn’t make it out of the Committee stage.
Meanwhile, more recently, Republicans and Democrats agreed to include a conflict of interest provision in the CLARITY Act, in a bid to address Trump’s involvement in crypto. The provision also aimed to prevent other public officials, like the Vice President, and members of Congress, from actively participating in crypto.
However, the White House objected to this provision in the CLARITY Act, preventing a setback for the bill, which just passed the Committee markup phase. These lawmakers plan to include a more suitable language in the bill before it proceeds to the House floor.
It is worth mentioning that the Trump Family’s World Liberty Financial is the issuer of the USD1 stablecoin. As such, the recently passed stablecoin bill represents a big win for the company. Trump has already asked the US House to pass the GENIUS Act without any add-ons and bring it to his desk quickly.
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