Warren, Waters Push SEC on Whether Trump Admin is Influencing Crypto Regulation for Personal Gain

Sen. Elizabeth Warren and Rep. Maxine Waters are calling on the US Securities and Exchange Commission (SEC) to clarify whether political interference tied to the Trump family’s crypto interests is affecting its enforcement actions.

In a joint letter sent Wednesday to Acting SEC Chair Mark Uyeda, the two top Democratic lawmakers urged the agency to preserve all internal communications and records related to World Liberty Financial (WLF), a crypto firm with deep financial ties to President Donald Trump’s family.

They also requested detailed information on the agency’s interactions with WLF and any related enforcement decisions.

$WLFI Profits Could Hand Trump Family $400M Windfall, Lawmakers Say

Further, the letter states that WLF last month disclosed more than $500m in exempt securities sales of its governance token, $WLFI, and announced plans to launch a stablecoin called USD1.

According to Warren and Waters, the Trump family is entitled to a sweeping share of the firm’s profits—75% of net revenue from token sales and 60% of operating profits—amounting to an estimated $400m stake.

NEW🚨:
Ranking Member @RepMaxineWaters & Ranking Member @SenWarren sent a letter to @SECGov Acting Chair, Mark Uyeda, demanding transparency regarding potential conflicts of interest and whether Trump’s financial ties have influenced SEC decision-making. | https://t.co/jFmUUHGfeX pic.twitter.com/bXZI0XHlFK

— House Committee on Financial Services – Democrats (@USHouseFSC) April 2, 2025

In the letter, the lawmakers described the arrangement as “an unprecedented conflict of interest,” warning that it could give the Trump administration a direct incentive to shape federal crypto oversight in ways that benefit the president’s family financially.

Warren and Waters Slam SEC for Backing Off Justin Sun Case

Their concerns grew after the SEC paused its enforcement case against Justin Sun. Sun is a controversial crypto entrepreneur and a major investor in WLF. The SEC charged him in 2023 with market manipulation and unregistered securities sales. He initially invested $30m in WLF, later increasing that amount to $75m.

Weeks after the expanded investment, the SEC allegedly paused its case against him. Warren and Waters say it raises serious questions about regulatory impartiality.

While the SEC has not publicly explained its decision to pause the enforcement action, the timing has drawn scrutiny from lawmakers who worry that political pressure from Trump-aligned interests may be influencing regulatory policy.

Warren Presses SEC on Whether WLF Received Preferential Treatment

World Liberty Financial is a relatively new company. Despite that, it has quickly become a major player in the crypto space. The firm is backed by high-profile investors. It also has ambitious plans for token and stablecoin offerings. As a result, WLF is now at the center of debates over crypto regulation and political influence.

Warren and Waters are now pressing the SEC for answers. They want a full account of the agency’s engagement with WLF. They are also asking about any enforcement discussions involving people linked to the company.

“The American people deserve to know whether their financial markets are being regulated impartially or whether regulatory decisions are being made to benefit the President’s family financial interests,” they wrote.