Former US President Donald Trump is making bold promises to transform the US into the “crypto capital of the planet” if he wins the upcoming presidential election. In his latest move, Trump enters the crypto space, raising questions about how his new venture, World Liberty Financial (WLFI), would fit within existing regulatory frameworks.
Trump’s Tied Crypto WLFI
Donald Trump has launched World Liberty Financial (WLFI), a platform that revolves around a non-transferable governance token. The WLFI token aims to reimagine decentralized lending and governance.
Trump’s two eldest sons, Donald Jr. and Eric, also actively promote this platform, posting about it on social media in addition to his campaign.
The venture has many wondering how it fits into securities and anti-money laundering laws, as Trump has gone from being skeptical of crypto during his presidency to a leading advocate for the sector.
Questions about WLFI token structure
According to an early whitepaper, World Liberty Financial plans to sell 30% of the tokens to raise $540 million, with the remaining 70% reserved for founders and project developers.
The project’s structure may seem simple, but it raises major concerns in light of US securities laws.
Experts like Dave Rodman, managing partner of Rodman Law Group, warn that simply blocking tokens or preventing transfers may not be enough to circumvent securities regulations. If Americans buy these tokens, the project could still be exposed to regulatory scrutiny.
Trump’s Crypto Plea
Trump has made his stance on crypto clear during his campaign, promising to install industry-friendly regulators. This shift from his previous position could benefit him personally, especially with the upcoming launch of World Liberty Financial.
The success of World Liberty Financial could hinge on these regulatory hurdles, but it’s clear that Donald Trump is betting big on the future of crypto.
