Inside Trump’s $57M Crypto Windfall as WLFI Cuts Coincide With Stablecoin Push
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The Trump family has significantly reduced its ownership stake in World Liberty Financial (WLFI), a fast-growing crypto firm, intensifying scrutiny over President Donald Trump’s financial entanglements as his administration pushes forward with major cryptocurrency legislation.
According to a Forbes report published Thursday, DT Marks DEFI LLC, President Trump principle holding vehicle in the venture, reduced its stakes to about 75% in December 2024 to approximately 60% by January, and to just 40% after June 8.
Trump Earned $57 Million From WLFI
The cut went unannounced as the WLFI updated the wording on the site of their company, and there was no official announcement by Donald Trump or the Trump Organization.
It is not clear whether the family directly benefited because of the stake cuts, but its proceeds might be in tens of millions according to Forbes estimations. The documentations indicate that Trump himself has received more than $57 million since the start of the venture as WLFI this month.
The sequencing of the ownership changes is causing some eyebrows. Politicians on both sides have recently demanded inquiries into the connections between Donald and the world of cryptocurrencies, especially following his administration’s heavy pursuit of regulating stablecoins.
GENIUS Act Clears Senate With Bipartisan Support
In March, WLFI introduced its own stablecoin, named USD1, days ahead of Congress considering the GENIUS Act, a broad bill designed to regulate the issuance and use of U.S.-based stablecoins.
The bill passed the Senate this week by wide bipartisan margins but it is not slated to move easily through the House because of concerns about Trump and WLFI.
Nevertheless, Donald also went on social media on June 19 urging House Republicans to pass the GENIUS Act ASAP, resulting in a new barrage of criticism by a wide array of ethics watchdogs who also believe that maybe the president is agenda-driven in the subject matter with his own financial-related concerns.
WLFI Gains Global Spotlight With Binance Deal
The WLFI token has received significant international coverage following a public announcement by an investment group based in Abu Dhabi that it was to employ the USD1 token to commit $2billion with one of the largest cryptocurrency exchanges in the world, Binance.
World Liberty Financial and the Trump Organization have not yet addressed the media on the ownership shifts. Nevertheless, analysts believe that the absence of disclosure is a possible strategy to keep the investors hopeful about the impending connections of the company with the Donald brand.
WLFI Growth Outpaces U.S. Regulatory Clarity
Dr. Eliza Cordero, a professor of political ethics at Georgetown University said, the concern isn’t just the money it’s the timing. We are seeing regulatory measures and business decisions that are both perilously intertwined and lacking in transparency.
As WLFI increasingly establishes its market in other parts of the world and the U.S. ramps up to regulate its stablecoins, the diminished but still-sizable ownership stake held by the Trump family in the firm remains a point of controversy regarding conflict of interest at the highest levels of government.
Conclusion
As the World Liberty Financial company extends its presence worldwide and the lawmakers in the United States of America make a push on the regulation of cryptocurrencies, the smaller but still significant stake of the Trump family keeps featuring within the ethical cracks. As financial influence and public policy collide, concern about the issue of transparency and timing will only increase over the weeks and months to come.
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FAQs
Q1: Why did the Trump family reduce its WLFI stake?
No official reason was given, but it may relate to growing political and regulatory scrutiny.
Q2: Did the family profit from the sale?
Possibly. Forbes estimates suggest the sale could be worth tens of millions.
Q3: What is the GENIUS Act’s link to WLFI?
WLFI launched a stablecoin just before the GENIUS Act advanced, raising conflict concerns.
Q4: Why are ethics groups concerned?
Trump’s crypto ties while pushing regulation raise conflict-of-interest questions.
Glossary of Key Terms
WLFI:
Crypto firm partly owned by the Trump family.
DT Marks DEFI LLC:
Trump family’s holding company for WLFI.
Stake Reduction:
Selling or decreasing ownership in a company.
USD1:
WLFI’s U.S. dollar-backed stablecoin.
GENIUS Act:
Bill to regulate U.S. stablecoins.
Stablecoin:
Crypto pegged to a stable asset like the dollar.
Binance:
Major global cryptocurrency exchange.
Reference
Read More: Inside Trump’s $57M Crypto Windfall as WLFI Cuts Coincide With Stablecoin Push">Inside Trump’s $57M Crypto Windfall as WLFI Cuts Coincide With Stablecoin Push
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