An umbrella company controlled by the Trump family has reportedly cut its stake in World Liberty Financial (WLF) by 20%, a move that has raised eyebrows amidst ongoing investigations into the family’s connections with the cryptocurrency industry. This divestment was noted in a recent report, revealing that DT Marks DeFi LLC had been gradually reducing its involvement since December 2024.
Background on the Stake Reduction
Initially, DT Marks DeFi LLC held a 75% stake in WLF as of late 2024. However, multiple reports indicate that this investment was reduced to approximately 60% by January and further decreased to around 40% post June 8. This complete process of divestment appears to be strategic, but it remains unclear if the Trump family profited significantly from the sale. Analysts suggest that the proceeds could potentially amount to millions of dollars.
The timing of this divestment coincides with heightened scrutiny from US lawmakers who are calling for investigative measures regarding the Trump family’s entanglement with the cryptocurrency sector. This intensifying focus on WLF comes at a crucial moment as the company announced plans to issue its own USD1 stablecoin back in March.
Legislative Context and Ongoing Investigation
The GENIUS Act, aimed at regulating payment stablecoins, recently passed the US Senate with bipartisan support. However, the bill’s progression may face hurdles in the House, particularly due to concerns about potential conflicts of interest stemming from Trump’s ongoing relationships in the crypto arena. The former president has actively urged legislative action, imploring Congress to expedite the passage of the GENIUS Act, signaling his vested interest in the matter.
As investigations continue, questions linger regarding the former president’s substantial earnings, reportedly exceeding $57 million from WLF as of June, during a period rife with ethical debates about insider trading and conflict of interest.
The Broader Implications
This situation not only highlights the intersection of politics and cryptocurrency but also underscores the potential repercussions for public trust regarding investment transparency and ethical governance. As the discourse surrounding cryptocurrency evolves, corporations like World Liberty Financial find themselves navigating complex regulatory landscapes while attempting to maintain a foothold in a rapidly changing market.
In summary, the Trump family’s decision to pull back from WLF raises important questions about financial integrity and the implications of governmental oversight in financial markets. As this narrative unfolds, stakeholders will be closely monitoring how these events will impact both the crypto market’s stability and political accountability moving forward.
