Trump Family Reduces World Liberty Financial Stake by 20% Amid Scrutiny

The Trump family has reduced its stake in the crypto project World Liberty Financial. DT Marks DEFI LLC, an entity linked to the Trump family, decreased its ownership from 60% to approximately 40%. This move comes amidst growing political scrutiny and a Senate investigation into Trump’s crypto ties. The change was noted in an update to the company’s legal disclosure section, signaling a potential shift in the Trump family's involvement in the controversial DeFi project.

World Liberty Financial, introduced in September 2024, is a decentralized finance (DeFi) protocol and cryptocurrency company. The company and brand have been closely tied to the Trump family since its inception. While the disclosure notes that Trump, his relatives, and employees of the Trump Organization do not serve as officers or directors of the firm or its parent company, it confirms that DT Marks DEFI LLC and “certain Trump family members” collectively hold 22.5 billion WLFI tokens. The entity also receives 75% of the token sale proceeds after expenses. In June, Trump reportedly earned $57 million from the sale of World Liberty Financial tokens.

The timing of the ownership change coincides with regulators intensifying scrutiny of World Liberty Financial. The U.S. Congress is currently considering the GENIUS Act, which would establish the first federal regulatory framework for the issuance and use of stablecoins. The Senate passed the bill earlier this week, and Trump has urged the House of Representatives to follow suit quickly. At the center of the debate is the company's stablecoin, USD1, which debuted in March on the Ethereum and BNB Chain networks.

In May, a senator started an investigation into World Financial Liberty and its ties to the President. The senator expressed concerns about the lack of transparency regarding President Trump’s financial entanglements with the company and demanded transparency for the American people. The reduction in the Trump family's stake in World Liberty Financial does not necessarily indicate a withdrawal from the crypto industry but rather a recalibration of their investment portfolio.

The implications of this stake reduction are multifaceted. On one hand, it could signal a cautious approach to the volatile crypto market, given the recent fluctuations and regulatory uncertainties. On the other hand, it might reflect a strategic decision to diversify investments and mitigate risks. The Trump family's involvement in World Liberty Financial has been a subject of interest, given the high-profile nature of their business dealings and the potential for significant financial gains or losses in the crypto sector.

The reduction in stake also raises questions about the future direction of World Liberty Financial. With the Trump family's influence waning, the project may need to rely more on its own operational capabilities and market strategies to maintain its position in the competitive crypto landscape. The company's legal disclosure section has been updated to reflect the change in ownership, providing transparency to stakeholders and investors.

In summary, the Trump family's decision to reduce its stake in World Liberty Financial from 60% to 40% is a significant development in the crypto industry. It underscores the dynamic nature of investments in digital currencies and the need for strategic adjustments in response to market conditions and regulatory environments. The move also highlights the Trump family's continued involvement in the crypto space, albeit with a more measured approach.