Senator Rips Trump’s World Liberty Financial for Weak Inquiry Response

• Senator Blumenthal called out Trump’s crypto firm for its weak response to the inquiry into the president’s crypto ties. 
• Trump’s World Liberty Financial attorneys criticized Blumenthal’s probe and clarified that the firm’s stablecoin mission is not to undermine the US dollar. 

The crypto industry has been witnessing a huge shift ever since Donald Trump started his presidency in the United States in 2024. Apart from promising to make the US a crypto capital, Donald Trump swiftly ventured into the industry and started several projects. His “Official Trump” memecoin and DeFi project, World Liberty Financial, are some of his noteworthy crypto projects. 

However, the US president’s involvement with the crypto industry is raising serious concerns among government officials. Senator Democrat Richard Blumenthal probed into this matter and slammed Trump’s World Liberty Financial for its inadequate response to his inquiry. 

TRUMP memecoin has quickly grabbed the attention of the entire industry with its incredible price surge in the first few days. Meanwhile, World Liberty Financial started accumulating several cryptocurrencies such as wBTC, ETH, ENA, TRX, and more. 

Taking things further, World Liberty Financial even announced the launch of its USD1 stablecoin. This raised concerns during the Senate hearing of stablecoin bills such as the STABLE Act and the Genius Act. Meanwhile, several officials expressed their speculations regarding Trump’s connections with the crypto industry. 

Senator Richard Blumenthal Slammed Trump’s World Liberty Financial 

Blumenthal sent a letter to World Liberty Financial claiming that the US president financially benefited from the project and also raised concerns about its USD1 stablecoin. He further expressed his concerns regarding US national security, as the project is attracting investments from foreign individuals. 

Law firm BakerHostetler responded to the letter and assumed it was not under any legal obligation to respond. Even though it didn’t give any details, it addressed Blumenthal’s accusations as inaccuracies. It further stated, 

“The company’s flagship product, USD1, is a fully reserved stablecoin backed exclusively by US Treasuries and cash equivalents. It is designed to increase global demand for US government debt and expand access to dollar-denominated financial tools at a time when adversarial regimes and emerging monetary blocs are challenging America’s monetary leadership.”

On the other hand, WLFI co-founder Zach Witkoff yesterday posted on X, mentioning that his lawyers responded to Blumenthal’s inquiry. He even highlighted that America needs solutions like their USD1 stablecoin, along with his focus on building the project instead of being intimidated by politicians. 

Senator Richard Blumenthal slammed World Liberty Financial, stating that their response is seriously inadequate. It even avoided addressing the fact that there is a risk of foreign investors compromising the US president through his Defi project. Blumenthal expressed his commitment to probe further into the matter and demand transparency for Americans. 

Another separate letter also arrived at Fight Fight Fight LLC, which is behind the Official Trump memecoin launch. Blumenthal accused a small group of insiders of benefiting from this project. However, this letter has not yet received any response from the attorneys of the project. 

Highlighted Crypto News Today: 

‌Saudi Central Bank Gains Indirect Bitcoin Exposure via Strategy Investment