Trump Family Secures Majority Control of World Liberty Financial

US lawmakers are moving swiftly to establish a clearer regulatory framework for stablecoins and the broader cryptocurrency market, following calls from President Donald Trump to provide more certainty for the growing digital asset industry. The legislative effort comes as the Trump family deepens its own involvement in the crypto sector, with direct financial interests in decentralized finance (DeFi) projects, meme coins, NFTs, and recently announced Bitcoin mining operations. This intersection of policymaking and private sector engagement has added new layers of complexity to the ongoing discussions in Washington.

Trump Family Consolidates Control Over World Liberty Financial Amid $550 Million Token Raise

The Trump family is quietly tightening its grip over World Liberty Financial, the high-profile decentralized finance (DeFi) platform launched before Donald Trump's return to the presidency. According to a new report by Reuters, two of the project's original co-founders have been ousted from their leadership positions, paving the way for the Trump family to take full operational control over the ambitious crypto project.

The move comes on the heels of World Liberty’s latest capital raise, in which the project secured an additional $250 million by selling more of its WLFI tokens. The token sale, conducted in January, saw the platform offer an additional 5% of the total WLFI token supply to investors after the first tranche of 20 billion tokens sold out in the days leading up to Inauguration Day.

To date, World Liberty has generated $550 million through the sale of WLFI tokens to both US-based accredited investors and a global retail base of non-accredited buyers. Under the platform’s official documents, the Trump family stands to claim a substantial 75% of net revenue from these token sales, setting the stage for one of the largest financial windfalls ever associated with a political family’s venture into cryptocurrency.

The project’s corporate restructuring now puts the Trump family firmly in the driver’s seat. In January, World Liberty launched a new parent company, WLF Holdco LLC, to oversee development of the WLF protocol. The holding company is majority-owned (60%) by DT Marks DeFi LLC — an entity controlled by Trump family members. This restructuring resulted in the removal of co-founders Zak Folkman and Chase Herro as ”sole directors and members” of World Liberty Financial Inc., according to disclosures on the platform’s website.

The site further confirms that the Trump family, via DT Marks DeFi LLC, now directly holds at least 22.5 billion WLFI tokens — nearly a quarter of the maximum 100 billion token supply.

When World Liberty was first unveiled in October 2024, the Trump family's involvement was more symbolic than operational, with Donald Trump himself named “Chief Crypto Advocate” and his sons Eric Trump and Donald Trump Jr. introduced as “Web3 Ambassadors.” Trump’s youngest son, Barron Trump, was designated “Chief DeFi Visionary.”

Now, their roles have expanded far beyond titles. Eric Trump, in particular, is listed as a board manager of WLF Holdco LLC, solidifying the family's direct influence over the protocol’s development and treasury management.

The project’s early contributors also include figures closely tied to Trump’s political and business circles. Zach Witkoff, son of former Trump Middle East envoy Steven Witkoff, is listed as a co-founder, along with Rich Teo, who previously co-founded blockchain infrastructure firm Paxos.

The Trump family’s financial stake in World Liberty is far from minor. In addition to their 75% cut from token sale proceeds — estimated at roughly $400 million of the $550 million raised so far — Reuters reports that the family will be entitled to 60% of the protocol’s future revenues once the platform becomes fully operational.

The terms leave just 5% of the raised funds earmarked for development, with the remaining shares allocated to early co-founders and contributors.

World Liberty’s codebase, reportedly drawing heavily from open-source lending protocol Aave, is still under development. Two of its listed developers, Octavian Lojnita and Bogdan Purnavel, previously worked on Dough Finance — an earlier DeFi project led by Folkman and Herro that collapsed after a major exploit.

Despite concerns over the Trump family's sweeping financial interests, World Liberty has attracted significant capital from major crypto players. Data from Arkham Intelligence shows that approximately 85,000 wallets participated in the two WLFI token sales, with over 70% of funds coming from large buyers spending at least $100,000 per wallet.

One of the most notable participants is Tron founder Justin Sun, who purchased $75 million worth of WLFI tokens. The project has also established partnerships with Movement — a scalable blockchain startup — and Ondo Finance, a tokenization firm founded by former Goldman Sachs employees. Both companies have indicated plans to collaborate with World Liberty on blockchain infrastructure and tokenization initiatives.

Additionally, World Liberty holds MOVE and ONDO tokens in its treasury, according to on-chain data.

A Controversial DeFi Empire

Since its inception, World Liberty has operated a large treasury of crypto assets. At its peak, the project controlled over $360 million in tokens, including major holdings in ETH, WBTC, USDT, and USDC. However, the project shocked observers when it liquidated over 90% of its crypto assets last year without clear explanation. It has since resumed buying back various digital assets, with current holdings exceeding $80 million.

Several prominent voices in the crypto industry have raised concerns over the ethical and regulatory implications of World Liberty’s token sales and financial structure. Ethereum founder Vitalik Buterin has previously cautioned that politicians launching token offerings or meme coins could use them as vehicles for influence-peddling, backdoor fundraising, or worse — covert bribery.

Despite mounting scrutiny, World Liberty shows no signs of slowing down. The project plans to launch its much-anticipated ”lend and borrow” DeFi market in the coming months, followed by the debut of a personal finance application designed to bring decentralized finance to mainstream users.

Additionally, the team has revealed early plans to introduce a new stablecoin, USD1, which would be issued on both Ethereum and Binance Smart Chain networks. The stablecoin would further expand the Trump family's influence in the DeFi space, adding a dollar-pegged product to World Liberty’s growing ecosystem.

With $550 million in funding, high-profile investors, and political royalty at the helm, World Liberty Financial is shaping up to be one of the most controversial and closely watched projects in the decentralized finance sector — a project where politics, money, and blockchain technology collide in unprecedented fashion.

US Lawmakers Race to Pass Stablecoin and Crypto Market Structure Bills as Trump Pushes for Regulatory Clarity

Meanwhile, US lawmakers are accelerating efforts to pass sweeping legislation that will finally establish clear rules for stablecoins and the broader digital asset market structure — a regulatory push reportedly encouraged by President Trump himself. However, the legislative process is facing obstacles, not only from partisan disagreements but also from the growing and controversial involvement of the Trump family in the cryptocurrency space.

Over the past several weeks, Capitol Hill has witnessed an intensified legislative sprint to bring two key bills to the president’s desk before the end of summer. The first, nicknamed the STABLE Act, focuses specifically on creating a framework for stablecoin issuers operating within US jurisdiction. The second aims to overhaul the country’s digital asset market structure, providing guidelines for exchanges, token classifications, and investor protections.

Yet, as lawmakers make headway, Trump’s own crypto ventures are adding complexity to the process.

During a press call on Monday, House Financial Services Committee Chair French Hill (R-Ark.) acknowledged the Trump family’s deepening engagement in the crypto industry. When asked by a reporter about the family’s involvement, which now includes investments in decentralized finance (DeFi), a meme coin empire, NFT collections, and — as of Monday — newly disclosed Bitcoin mining interests, Hill conceded that the Trump family's activities have made it harder for lawmakers to advance a neutral and balanced framework.

One of the primary flashpoints is World Liberty Financial, the Trump-backed DeFi protocol that announced plans last week to launch its own stablecoin, dubbed USD1. The Trump family's direct financial interests in both the development of this stablecoin and other Web3 initiatives are prompting questions about potential conflicts of interest, particularly as the president publicly urges Congress to prioritize crypto legislation.

Despite the political entanglements, the legislative machinery is moving forward. On Wednesday, the House Financial Services Committee will vote to amend and approve the STABLE Act, which seeks to establish baseline requirements for US dollar-pegged stablecoins. The bill includes provisions on how stablecoin issuers can operate at the state and federal level and introduces a two-year compliance window for foreign stablecoin issuers like Tether to meet US standards.

Meanwhile, the Senate has already passed its version of stablecoin legislation, referred to as the GENIUS Act, earlier in March. The two versions differ primarily on regulatory treatment of foreign issuers and oversight responsibilities between state and federal agencies.

Rep. Bryan Steil (R-Wisc.), who leads the House Financial Services Committee’s digital asset panel, remarked that the two bills are “80% aligned” and expressed optimism about reconciling the remaining differences. “At the end of the day, I think there’s recognition that we want to work with our Senate colleagues to get this across the line,” Steil said.

Jaret Seiberg, a policy analyst at TD Cowen’s Washington Research Group, wrote in a note on Monday that he expects the House Financial Services Committee to pass the STABLE Act this spring, followed by a full House vote. The Senate is also likely to move forward with its stablecoin bill in the coming months, Seiberg added, predicting a final version could pass both chambers before the summer recess.

A key sticking point will be how foreign stablecoins, particularly Tether's USDT — the world's largest stablecoin by market cap — are treated under the legislation. 

The legislation is poised to reshape not only how stablecoins operate in the US but also how foreign stablecoins interact with American markets. Lawmakers have long argued that a lack of clear regulatory oversight over stablecoins poses risks to financial stability, investor protection, and monetary policy enforcement.

A Comprehensive Market Structure Framework

Lawmakers are also working in parallel to pass a broader market structure bill that would regulate the issuance, trading, and classification of digital assets. Hill confirmed that a hearing on the House version of the market structure bill is scheduled for April 9.

Both Hill and Steil stressed that the stablecoin and market structure bills are “linked” and essential to the future of US crypto regulation.

President Trump himself is reportedly keen on seeing both pieces of legislation finalized and presented to him in the coming months, signaling a rare moment of bipartisan urgency on crypto regulation — albeit clouded by questions surrounding the Trump family’s direct financial stake in the crypto industry.

The crypto industry is watching developments closely. A clear and unified federal framework could unlock significant capital and institutional participation in the US crypto market, which has long been stifled by regulatory uncertainty and enforcement-driven oversight.

However, the president’s overt involvement and the Trump family’s financial interests may complicate the narrative. Several lawmakers and commentators are raising ethical questions about whether the legislation is being shaped, directly or indirectly, to benefit private family interests.

Still, with billions of dollars and the future of US crypto regulation hanging in the balance, the momentum toward passage of the STABLE Act and market structure legislation appears strong — setting up what could be one of the most consequential crypto policy moments in US history.