Is Trump taking advantage of the situation to profit for WLFI? Democrat Warren asks SEC to clarify, stablecoin USD1 sparks political controversy

The Trump family has been quite active in the crypto market recently, triggering Democratic lawmakers to question the suspicion of "using presidential power for family interests". Famous anti-crypto Democratic Senator Elizabeth Warren and Representative Maxine Waters jointly wrote to SEC Acting Chairman Mark Uyeda, demanding access to all communication records between Trump and his project WLFI, and warning Uyeda that "regulatory agencies may have been politically intervened".

The incident originated from Trump's crypto project "World Liberty Financial (WLFI)" launching its own stablecoin USD1, with rumors suggesting that USD1 might be used by the government as a payment tool, sparking regulatory controversy.

From Late 2024 to Early 2025, Trump Extensively Intervenes in Crypto Policies

Trump has launched multiple policies and plans related to cryptocurrencies, including:

• Plan to establish a National Cryptocurrency Stockpile
• Launch of Trump Coin (TRUMP)
• Expanding interaction with family-supported crypto project WLFI

In Late March 2025, WLFI Launches Its Own Stablecoin USD1

• USD1 is launched on BNB Chain and Ethereum

• If incorporated into government payment systems, the Trump family would directly benefit.

On April 2, 2025, Democratic Lawmakers Oppose

Democratic Senator Warren and Representative Waters sent a letter to SEC Acting Chairman Mark Uyeda. They requested the SEC to:

• Preserve all communication records between Trump and WLFI
• Explain whether policies have been influenced by WLFI or Trump family interests
• Accuse Trump of potentially influencing SEC to adopt a "regulatory stance favorable to his own interests"

That day, Waters spoke again in Congress: "If regulatory agencies lack oversight and transparency, Trump could potentially make USD1 a government payment tool as a means of profiting."

President Investing in His Own Enterprise, Fair Regulation Still Questionable

Waters emphasized: "The Trump family has financial stakes in WLFI, and this conflict of interest is too obvious. The public has the right to know whether financial regulation has been infiltrated by private interests."

She is even more concerned that if the SEC, as an independent regulatory body, is influenced by Trump and his family's interests, it would severely damage market credibility and endanger investor rights.

Whether Trump is Profiting from His Position, Igniting US Political Controversy

The Trump family's steps into the crypto industry are becoming faster, while the regulatory stance is becoming increasingly lenient. Whether this involves political intervention and self-enrichment will become a focus of future US political and financial regulation.

Whether the SEC can truly remain an independent regulatory body, free from political interference, remains to be observed.