Trump’s crypto empire blurs the line between presidency and personal profit
A recent report by Democracy Defenders Fund reveals that there is a significant conflict of interest between President Trump’s financial involvement in cryptocurrency during his administration.
The report illuminates how the Trump family’s crypto venture World Liberty Financial, Inc. (WLFI), the $trump meme coin, and the $WLFI governance token have rapidly increased the wealth of his family by billions.
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Trump’s growing crypto wealth
Trump’s crypto assets include $TRUMP and stakes in WLFI, comprising a major portion of his net wealth, approximately 40 per cent. WLFI, which is owned 60 per cent by an entity affiliated with President Trump and his family members, released a stablecoin named USD1 and is expected to further boost Trump’s wealth.
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$Trump Meme Coin- Launched just before his inauguration, it is highly volatile and its value swings depending on his policy decisions and social media promotion. Trading fees from $Trump have generated tens of millions of dollars for Trump however, the exact figure is unclear due to the opaque ownership structure.
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$WLFI Governance Token- Raise $550 million investment from investors like Justin Sun. Trump and his family, via affiliated entities, hold significant equity and rights to protocol revenue.
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USD1- It’s marketed as fully backed by U.S. Treasuries and cash equivalents, and always valued as $1. But the use of the USD 1 code may lead potential investors to believe it’s backed. There are concerns related to its transparency. WLFI has announced that an independent auditor outside the firm will audit the reserves. However, they have not named the auditor or mentioned the frequency of such audits.
Policy action and conflicts in government
The report states that President Trump had issued an executive order on 23rd January to establish a regulatory framework promoting digital currencies and private sector stablecoins while rejecting the development of central bank digital currency. The policy directly aligns with the Trump family’s business interests and could directly benefit their crypto holdings.
Deputy Attorney General Todd Blanche directed the Justice Department to relax criminal charges related to digital assets unless they are related to unlawful conduct by drug cartels, transnational criminal organisations, foreign terrorists or specially designated global terrorists. Thus, potentially reduces regulatory oversight.
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Several Trump appointees, such as David Sacks and Steven Witkoff, have direct financial interests in WLFI and its partners.
Even though the White House released a statement last month that President Trump’s assets are in a trust managed by his children, his active involvement in the promotion and profit of this venture significantly undermines the purpose of such trusts.
The President is not a subject of the criminal conflict of interest statute like other executive branch employees. This gap in legality allows him to participate in crypto-related policymaking that directly impacts his financial interests.
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