US lawmakers press SEC for info about Trump family-backed crypto firm
Two Democratic lawmakers in the US Senate and House of Representatives have called on acting Securities and Exchange Commission (SEC) Chair Mark Uyeda to preserve information regarding World Liberty Financial, the crypto firm backed by President Donald Trump’s family.
In an April 2 letter, Senator Elizabeth Warren and Representative Maxine Waters — ranking members of the Senate Banking Committee and House Financial Services Committee, respectively — asked Uyeda to provide information to Congress based on Trump’s ties to World Liberty Financial (WLFI). The two lawmakers suggested the SEC may be being influenced by the firm, and “this conflict of interest may be interfering with its mission to protect investors and maintain fair and orderly markets.”
“The Trump family’s financial stake in World Liberty Financial represents an unprecedented conflict of interest with the potential to influence the Trump Administration’s oversight — or lack thereof — of the cryptocurrency industry, creating an obvious incentive for the Trump Administration to direct federal agencies, including the SEC, to take positions favorable to cryptocurrency interests that directly benefit the President’s family,” said the letter.
April 2 letter to acting SEC chair Mark Uyeda. Source: House Financial Services Committee
The letter came roughly a week after WLFI announced it had launched a stablecoin, USD1, on the BNB Chain and Ethereum blockchain. However, since January, Trump has followed through with several crypto policies and projects with potential conflicts of interest, including plans to establish a national cryptocurrency stockpile and the launch of a TRUMP memecoin.
Related: Crypto has a regulatory capture problem in Washington — Or does it?
According to Warren and Waters, Americans deserved transparency about Trump’s crypto ventures and how they could potentially influence policy at the SEC, a financial regulatory agency largely intended to be independent of the administration. The two called on Uyeda to preserve records and communications related to WLFI from Trump and his family, as well as communications with the SEC.
“The American people deserve to know whether their financial markets are being regulated impartially or whether regulatory decisions are being made to benefit the President’s family financial interests,” wrote the Democratic lawmakers.
The letter reiterated arguments Waters made in an April 2 House Financial Services Committee hearing. The California lawmaker said that without oversight and accountability, Trump could install WLFI’s stablecoin for government payments and profit directly from his position as president. Many other lawmakers and financial experts across the political spectrum have expressed concern over Trump’s potential conflicts of interest with the crypto industry.
SEC leadership under Trump
Since Trump appointed Uyeda as acting chair, the SEC has dropped investigations and enforcement actions into several crypto firms, including those with executives who contributed directly to the president’s 2024 campaign.
Paul Atkins, Trump’s pick to chair the SEC after Uyeda, is expected to face a vote in the Senate Banking Committee on April 3. If Atkins’ nomination moves out of committee, the full chamber will decide whether to confirm him.
Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
Politics
Starmer needs to publicly say Trump is wrong and give more reassurance over tariffs, Harriet Harman urges
Sir Keir Starmer needs to reassure the public more over tariffs – and tell them Donald Trump is wrong, Harriet Harman has said.
Speaking to Beth Rigby on Sky News’ Electoral Dysfunction podcast, the Labour peer said ministers were avoiding the “elephant in the room, which is that Trump is wrong on this, we don’t agree with him”.
The US president placed 10% tariffs on all UK goods exported to the US, and while other countries were much worse hit, the FTSE 100 fell by about 1,000 after Mr Trump’s “liberation day” announcement last week.
It then kicked off its best day in five years on Thursday after Mr Trump decided to defer the worst of his tariffs for 90 days. Financial markets around the world reacted similarly.
Baroness Harman said there was no need for “gratuitous insults” but that the prime minister needed to “own the narrative” because there is “a danger” if the leader of the country is not saying what is actually happening.
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PM reacts to tariffs at liaison committee
A minister under Tony Blair and Gordon Brown, Baroness Harman said that when the US put steel tariffs on imported steel in 2002, Mr Blair “did say ‘this is unacceptable, this is wrong, it’s unjustified, it is breaching the World Trade Organisation rules'”.
“He was able to say ‘we do not believe this is how you should be within the world organisation and Bush has got it wrong’,” she added
“I think it feels as if there’s a kind of restricted vocabulary amongst ministers at the moment where they are speaking in code.”
The Labour peer said she also thought Sir Keir should be “being more positive and giving reassurance”.
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Sir Keir Starmer and Donald Trump at the White House in February. Pic: AP
She acknowledged there was “a lot of criticism” in the first six months of Labour’s tenure and the government “didn’t help the economy by rather talking it down”.
There is a danger of being “too pessimistic”, she said, and Sir Keir needs to be “realistic”.
“But I think that giving people reassurances – we’re not going to panic, we’re not going to make mistakes by knee-jerk retaliation,” she said.
“I think the story needs to be told to the country that this is a really difficult problem and Trump has caused it and he is wrong to do this, but we will be okay with this government.
“And I think he’s entitled to say that, and I think people will want to hear that.”
Crypto-critical US Senator Elizabeth Warren has led six Senate Democrats in urging the Department of Justice to reverse its decision to terminate its crypto investigations and prosecutions division.
In an April 10 letter to Deputy Attorney General Todd Blanche, the Senators said the decision to disband the department’s National Cryptocurrency Enforcement Team was a “grave mistake” that would support “sanctions evasion, drug trafficking, scams, and child sexual exploitation.”
Senators Richard Durbin, Mazie Hirono, Sheldon Whitehouse, Christopher Coons and Richard Blumenthal signed the letter in addition to Warren.
On April 7, Blanche shuttered the DOJ’s crypto enforcement team, saying in a memo that “The Department of Justice is not a digital assets regulator.”
The senators claim that the decision gave a “free pass to cryptocurrency money launderers” and claimed that crypto mixing services — used to obfuscate blockchain transactions — are “go-to tools for cybercriminals.”
“It makes no sense for DOJ to announce a hands-off approach to tools that are being used to support such terrible crimes,” the letter said.
An excerpt of Democrat’s letter to the DOJ. Source: US Senate Committee on Banking, Housing, and Urban Affairs
The senators also questioned why the Justice Department had decided not to prosecute a “host of crimes involving digital assets, including violations of the Bank Secrecy Act.”
They claimed that this creates a “systemic vulnerability in the digital assets sector,” which “drug traffickers, terrorists, fraudsters, and adversaries” will exploit on a large scale.
The lawmakers requested a staff-level briefing no later than May 1, providing “detailed information on the rationale behind these decisions.”
Targeting Trump family crypto endeavors
The letter also took a swipe at the Trump family’s crypto projects, suggesting potential conflicts of interest.
Related: SafeMoon boss cites DOJ’s nixed crypto unit in latest bid to toss suit
A press release accompanying the letter stated that the senators are raising concerns about the “potential connections” between the DOJ’s actions and the crypto ventures of President Donald Trump and his family.
The Trumps have an interest in and have backed the crypto platform World Liberty Financial along with its token. The platform is also planning to launch a stablecoin while President Trump’s sons, Eric Trump and Donald Trump Jr., are working to launch a crypto-mining company called American Bitcoin.
“Your decisions give rise to concerns that President Trump’s interest in selling his cryptocurrency may be the reason for easing law enforcement scrutiny,” the Democrats stated.
In a memo announcing the crypto enforcement team’s disbandment, Blanche accused the Biden administration of using the Justice Department to “pursue a reckless strategy of regulation by prosecution.”
Magazine: Illegal arcade disguised as … a fake Bitcoin mine? Soldier scams in China: Asia Express
New York Attorney General Letitia James has sent a letter to US congressional leaders urging “common sense” federal crypto regulations and to keep digital assets out of US pensions.
“I am urging Congress to pass legislation that would strengthen federal regulations on the cryptocurrency industry to protect investors, strengthen financial markets, and stop fraud,” James said in a 14-page letter shared on April 10, outlining six major risks if the sector remains unregulated.
She said that without appropriate safeguards, the “unchecked proliferation of digital assets” undermines US dollar dominance, weakens national security due to criminal activity, and “undermines the stability of financial markets.”
Unregulated crypto also subjects investors to “price manipulation and rigged markets,” facilitates fraud that “drains billions of dollars from hardworking Americans, and extracts assets and investments from the American economy,” she said.
An excerpt of James’ letter to Congress. Source: Office of the New York State Attorney General
James made a number of recommendations and pushed Congress for legislation that would require stablecoin issuers to have a US presence and regulatory oversight and mandate backing stablecoins with US dollars or treasuries.
She also wants regulations that require platforms to work only with anti-money laundering-compliant entities, establish registration requirements for issuers and intermediaries, protect against conflicts of interest and promote price transparency and require fraud prevention measures.
No crypto assets in pension funds
The New York’s top lawyer also aired her concerns about including crypto in pension funds.
“Digital assets are uniquely unsuitable for retirement savings due to their high volatility,” she said, claiming that they have no value.
“The underlying value of cryptocurrency is unpredictable and not determined by true price discovery because they have no intrinsic value on which their prices are based.”
James also urged against retirement funds investing in crypto-tracking exchange-traded funds, stating that “unlike traditional exchange-traded funds backed by stocks and bonds, cryptocurrency held to back cryptocurrency ETFs are at risk of permanent theft.”
Related: US lawmaker will reintroduce crypto retirement bill to help Trump agenda
“As Congress takes the mantle to propose legislation governing the cryptocurrency industry, we hope it also takes action to mitigate the risks posed by the industry to America’s national security, financial stability, and citizens,” James said.
The call for regulation follows the US Department of Justice’s reported dismantling of its federal criminal cryptocurrency fraud enforcement division.
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