World Liberty Financial, the crypto venture backed by members of the Trump family, is pushing back against calls on Capitol Hill for a formal probe into its operations.
Letter Rejects “False Choice”
Co-founder Zach Witkoff released a May 15 letter to Senator Richard Blumenthal in which company attorneys said lawmakers’ concerns were based on “fundamentally flawed premises and inaccuracies.”
“The Company rejects the false choice between innovation and oversight,” the letter argued. “What it opposes is the misuses of regulatory authority and uncertainty to suppress lawful innovation.”
WLFI maintains that questions surrounding its USD1 stablecoin do not warrant sweeping investigations that could stall development.
Democrats Press Conflict-of-Interest Angle
Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, has rallied Democrats to examine potential conflicts stemming from former President Donald Trump’s stake in WLFI, his TRUMP memecoin, and a forthcoming dinner for top tokenholders.
The senator warned that “WLFI’s financial entanglements with the President, his family, and the Trump Administration present unprecedented conflicts of interest and national security risks, including potential violations of the foreign emoluments clause.”
Stablecoin Bill Could Decide the Matter
Attention is now fixed on the GENIUS Act, a Republican-sponsored measure that would grant payment-instrument status to certain stablecoins.
Should USD1 qualify under the legislation, critics fear Trump could benefit financially while also influencing the regulatory environment in which the product operates.
Some Democrats have proposed amendments to ensure no sitting or former president can profit from a stablecoin they could later help legitimize.
WLFI Says It Is “Too Busy Building”
Despite the political storm, Witkoff insists the team is focused on launching products and onboarding users rather than lobbying.
He characterizes oversight efforts as distractions that risk pushing stablecoin innovation offshore.
What Happens Next
The GENIUS Act’s timeline remains unclear, and Senate leadership has not scheduled a vote.
If the bill advances, expect renewed scrutiny of WLFI’s cap table and the extent of Trump family involvement.
Conversely, a prolonged stalemate may give the platform breathing room to scale before facing a fresh round of hearings.
