Trump Family Reduces WLFI Stake by 35% Amid Crypto Regulation Push

President Donald Trump's family has significantly reduced its ownership stake in World Liberty Financial (WLFI), a rapidly growing crypto firm. This move has intensified scrutiny over Trump’s financial entanglements as his administration advances major cryptocurrency legislation. According to a report, DT Marks DEFI LLC, the Trump family's principal holding vehicle in the venture, reduced its stakes from about 75% in December 2024 to approximately 60% by January, and further to just 40% after June 8. This reduction went unannounced, with no official statement from Donald Trump or the Trump Organization.

The exact financial benefits to the Trump family from these stake reductions are unclear, but according to estimations, the proceeds might be in tens of millions. Documentation indicates that Trump himself has received more than $57 million since the start of the venture with WLFI this month. The timing of these ownership changes has raised eyebrows, particularly as politicians on both sides have demanded inquiries into the connections between Trump and the world of cryptocurrencies, especially following his administration’s heavy pursuit of regulating stablecoins.

In March, WLFI introduced its own stablecoin, named USD1, just 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 faces challenges in the House due to concerns about Trump and WLFI. Trump himself urged House Republicans to pass the GENIUS Act quickly, resulting in criticism from ethics watchdogs who believe his actions may be driven by personal financial interests.

The WLFI token has gained significant international attention following an announcement by an investment group based in Abu Dhabi that it would use the USD1 token to commit $2 billion with Binance, one of the largest cryptocurrency exchanges in the world. Despite the media attention, neither World Liberty Financial nor the Trump Organization has addressed the ownership shifts. Analysts suggest that the lack of disclosure could be a strategy to keep investors hopeful about the company's impending connections with the Trump brand.

Dr. Eliza Cordero, a professor of political ethics at Georgetown University, expressed concern over the intertwining of regulatory measures and business decisions, noting the lack of transparency. As WLFI expands its market globally and the U.S. ramps up regulation of stablecoins, the Trump family's diminished but still-sizable ownership stake in the firm remains a point of controversy regarding conflict of interest at the highest levels of government. The ethical cracks surrounding the Trump family's financial influence and public policy will likely intensify in the coming weeks and months.