Former U.S. President Donald Trump is making bold promises to turn the United States into the “crypto capital of the planet” if he wins the upcoming presidential election. With his latest move, Trump has entered the crypto space, sparking questions about how his new venture, World Liberty Financial (WLFI), might fit into existing regulatory frameworks.
Trump’s Tied Crypto WLFI
Donald Trump has unveiled World Liberty Financial (WLFI), a platform that revolves around a non-transferable governance token. The WLFI token aims to revolutionize decentralized lending and governance. Notably, Trump’s two eldest sons, Donald Jr. and Eric, are also actively promoting this platform, sharing updates on social media in conjunction with his campaign.
This venture has left many pondering how it aligns with securities and anti-money laundering laws. Trump has shifted from his prior skepticism about cryptocurrency during his presidency to now becoming a prominent advocate for the industry.
Questions Around WLFI’s Token Structure
World Liberty Financial plans to sell 30% of the tokens to raise $540 million, with the remaining 70% reserved for founders and project developers, according to an early white paper. While the project’s structure might appear straightforward, it raises significant concerns under U.S. securities laws.
Experts like Dave Rodman, managing partner of Rodman Law Group, caution that simply locking tokens or preventing transfers may not suffice to sidestep securities regulations. If Americans purchase these tokens, the project could still face regulatory scrutiny.
Trump’s Crypto Advocacy
Throughout his campaign, Trump has made his stance on cryptocurrency abundantly clear, pledging to appoint regulators who are favorable toward the industry. This shift from his previous position might benefit him personally, especially with the forthcoming launch of World Liberty Financial.
World Liberty Financial’s success could hinge on navigating these regulatory challenges, but it’s evident that Donald Trump is placing a significant bet on the future of cryptocurrency. His advocacy and involvement in the crypto sector could potentially transform the U.S. into a global leader in digital finance.
As the world watches, the coming months will reveal whether Trump’s ambitious plans will materialize and how they will reshape the landscape of cryptocurrency regulation and adoption in the United States.
