Lawmakers Request SEC Records on WLFI Over Trump Family’s Reported Financial Ties

• WLFI reported $500 million in token sales with major Trump family revenue claims.
• Lawmakers questioned SEC’s pause on Justin Sun’s case linked to WLFI.
• A stablecoin bill faces opposition tied to the Trump family’s reported involvement in WLFI.

Two Democratic legislators have formally asked the U.S. Securities and Exchange Commission to release internal records tied to World Liberty Financial. Senator Elizabeth Warren and Representative Maxine Waters submitted the request in a letter dated April 2. Their inquiry seeks documents that may reveal potential conflicts of interest involving the Trump family and WLFI’s operations. The request comes after WLFI disclosed $500 million in exempt token sales and announced plans to launch a stablecoin.

Revenue Claims Raise Oversight Concerns

The lawmakers questioned whether the Trump family’s reported stake in WLFI could affect the SEC’s regulatory decisions. According to recent filings, the family holds a 75% claim on net revenue from WLFI’s token sales and a 60% claim on the company’s operations. The total share is currently estimated at $400 million.

The inquiry specifically asks if these financial interests might influence the SEC’s conduct under acting Chair Mark Uyeda. Lawmakers stated that such influence could undermine the agency’s responsibility to protect market integrity. In the April 2 letter, they referred to the arrangement as an “unprecedented conflict of interest.”

Scrutiny Over SEC’s Sun Case Pause

The letter also questioned the SEC’s February decision to pause its enforcement case against Justin Sun. According to public disclosures, Sun has invested $75 million in WLFI. The lawmakers asked the agency to preserve all internal records supporting its enforcement decision. They requested meeting notes, memos, and emails involving SEC staff and representatives linked to Sun or the Trump family. 

Moreover, they asked whether the agency received any input from the White House before it decided to pause the case. The request also includes a call for documentation of communication from the Trump family about WLFI or Justin Sun. Legislators asked whether SEC officials had sought advice from ethics officers about the matter.

This development follows a recent House Financial Services Committee hearing on stablecoin oversight. During the session, Representative Waters stated opposition to the new stablecoin rules unless they restrict involvement from the Trump family. Her remarks came days after WLFI revealed plans to issue USD1, a dollar-pegged stablecoin. According to the letter, the lawmakers emphasized the public’s right to transparency in financial regulation. They asserted that federal oversight should operate without undue personal influence from any party.