Trump Wallet Project Halted by WLFI Cease-and-Desist Letter

The Trump Wallet Project, a collaboration between Magic Eden and the creators of the Trump-themed meme coin, was abruptly halted following a cease-and-desist letter from World Liberty Financial (WLFI). The project, which aimed to launch a new Trump-branded crypto wallet, faced immediate backlash from Trump's inner circle, particularly Donald Trump Jr., who serves as WLFI’s “Web3 ambassador.” Trump Jr. publicly denied any affiliation with the wallet project and hinted at an official Trump-approved wallet in the near future.

The controversy surrounding the Trump Wallet Project highlights the increasing political tension over Trump’s involvement in the crypto industry. The cease-and-desist letter from WLFI was issued after the announcement of the wallet, which WLFI claims was developed without the Trump Organization’s involvement. Despite the legal warning, the original promotional posts on X from Magic Eden and Gettrumpmemes are still live, but the associated website, TrumpWallet.com, has gone offline.

WLFI, a crypto platform backed by former US President Donald Trump and his family, has raised over $550 million through token sales as of March. The platform is already under scrutiny for its USD1 stablecoin, which made headlines in May when an Abu Dhabi-based firm revealed plans to use USD1 to settle a $2 billion investment in Binance. The Trump family holds equity in WLFI and benefits financially through a company linked to the president that collects transaction fees.

The political ramifications of Trump’s crypto ventures are intensifying, with some Democratic lawmakers accusing the president of using his office to enrich himself through his digital asset businesses. These allegations could complicate efforts to pass key legislation in Congress, including bills that would regulate payment stablecoins and establish a market structure for digital assets.

During a House Financial Services Committee hearing, Representative Maxine Waters warned that Trump’s digital asset ventures could undermine investor protections and exploit proposed legislation like the CLARITY Act. Waters pointed to Trump’s recent dinner with top meme coin holders, which attracted $148 million in contributions, and warned that the bill could allow him to funnel Americans’ funds into his own digital wallet. Waters criticized the CLARITY Act as rushed and dangerously permissive, lacking protections for investors and penalties for bad actors.

Committee Chair French Hill defended the bill’s intent, arguing that the current lack of federal oversight for digital assets is stifling innovation and creating confusion for investors. However, former CFTC Chair Timothy Massad directly addressed the issue by saying Trump’s crypto dealings cast a “taint” on the entire industry and pose national security concerns. He questioned whether the president’s actions were aligned with national interests or personal gain.

Waters has introduced a separate bill aiming to bar the president, vice president, and members of Congress from participating in crypto ventures. This legislation came on the same day as Trump’s meme coin dinner, during which the president spoke from a podium bearing the presidential seal—despite claims it was a personal event. Overall, as both the CLARITY Act and the GENIUS Act continue to move through Congress, Democrats are still very hesitant to support any bill that fails to address the growing concerns over Trump’s influence on the digital asset space.