Trump Family Reduces World Liberty Financial Stake by 35% Amid GENIUS Act Debate

The Trump family has quietly reduced its stake in World Liberty Financial, a stablecoin-focused platform, from 75% in December 2024 to 40% by mid-June 2025. This reduction was not publicly announced and was only noticed through changes on the company's website and filings. The move comes as President Donald Trump is pushing for the passage of the GENIUS Act, a stablecoin bill that recently passed the Senate with bipartisan support. The Trump family’s involvement in a company that launched a dollar-pegged stablecoin just months ago has raised ethical concerns from lawmakers and policy watchdogs.

World Liberty Financial gained significant attention earlier this year when it launched USD1, a U.S. dollar-backed stablecoin. The company began issuing USD1 just days before the GENIUS Act moved in Congress, placing itself at the center of a sector about to be regulated. The token reportedly went live when political support for regulation was increasing, driven by Republicans and many in the industry. The proximity of Trump’s personal gains to policy decisions has raised eyebrows, as the president has publicly supported the bill, urging lawmakers to pass it “ASAP” in a June 19 social media post. Critics argue that this dual role as policymaker and crypto stakeholder is problematic.

The GENIUS Act, formally the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025, is the first time the Senate has passed a bill focused solely on stablecoins. If passed, it would require U.S.-based issuers to disclose reserves, anti-money laundering controls, and regulatory oversight. The bill now goes to the House of Representatives, where bipartisan talks are ongoing. However, President Trump’s involvement in World Liberty Financial is already clouding the path forward. Democratic lawmakers, including Senator Elizabeth Warren, say allowing politically connected stablecoin issuers to benefit from laws shaped by the executive branch erodes public trust in financial governance.

The timing of the Trump stake reduction, just after the Senate passed the GENIUS Act, has only added to the debate over transparency and conflicts of interest. As the stablecoin sector becomes a new financial frontier, the perception of fairness and regulatory impartiality matters. As of mid-June, World Liberty Financial has reportedly raised around $550 million via token offerings. The company is also reportedly embroiled in a controversial deal with a $2 billion investment commitment from an Abu Dhabi-based firm using the USD1 stablecoin on Binance.

Neither the Trump Organization nor World Liberty Financial has commented publicly on the sale of shares or their remaining crypto strategy. This situation reveals the complexity of governing digital finance in a political environment. While the Trump family’s stake reduction may have reduced some conflict of interest concerns on paper, the bigger implications are still unclear. The House’s decision on the GENIUS Act will be a test, not just for stablecoin policy, but for setting ethical boundaries in a crypto-integrated political world.