Two Democratic legislators have requested the U.S. Securities and Exchange Commission (SEC) to preserve and disclose records related to World Liberty Financial (WLFI).

In an April 2 letter, Senator Elizabeth Warren and Representative Maxine Waters raised concerns about potential conflicts of interest arising from the Trump family’s involvement in the project.

Concerns Over Trump Family’s Influence

The lawmakers specifically questioned whether the family’s financial ties to WLFI might influence the SEC’s activities under acting Chair Mark Uyeda. The letter states that the inquiry seeks to determine “whether this conflict of interest may be interfering with its mission to protect investors and maintain fair and orderly markets.”

Last month, World Liberty Financial reported over $500 million in exempt securities sales of its governance token, WLFI. According to the document, the president’s family holds a 75% claim on net revenues from token sales and 60% from the project’s operations, currently entitling them to about $400 million in fees.

Warren and Waters called the Trumps’ stake in WLFI “an unprecedented conflict of interest” that could influence the government’s oversight of the crypto industry. They further argued it gives them “an obvious incentive” to direct federal agencies, including the SEC, toward crypto policies benefiting the president’s family.

SEC’s Decision on Sun’s Case

The letter also scrutinized the regulator’s February decision to pause its case against Justin Sun, who has invested $75 million into WLFI. The two politicians asked the agency to preserve “all internal memoranda justifying the initial enforcement decision,” including records of meetings and communications between its officials and representatives of Sun or the Trump family.

Additionally, they requested that the financial watchdog maintain records of “communications, suggestions, or directives” from the White House or the Trump family regarding WLFI or Sun’s case.

They also asked whether it had consulted with ethics officials concerning the Trump family’s crypto investments and requested copies of any policies in place to prevent undue influence from the president’s kin.

According to the document, the American people have a right to know if financial markets are regulated fairly or if decisions are being made to serve personal interests.

The inquiry follows an April 2 House Financial Services Committee session on stablecoin regulation. The government has stated its intent to prioritize stablecoin regulation and integration.

During the session, Waters opposed the bill unless it included provisions preventing Trump or his affiliates from owning a stablecoin issuer, arguing that it “sets a dangerous precedent benefiting the president and his insiders.” Her comments followed WLFI’s March 25 announcement of its plan to launch USD1, a U.S. dollar-pegged stablecoin.

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