A $75 million loan backed by nearly half a billion dollars worth of a company’s own tokens is now at the center of a Senate push to get regulators involved in the Trump family’s crypto operations.
The Loan That Raised QuestionsThe transaction produced roughly $65 million in the company’s own USD1 stablecoin and another $10 million in USDC. What made the deal stand out was the timing.
Regular investors who held WLFI tokens were still locked in — blocked from selling — while the transaction went through. Shortly after, the token’s price dropped nearly 10% to a record low.
WARREN ASKS SEC TO INVESTIGATE WORLD LIBERTY FINANCIAL
The Crypto Issue: A Lopsided StructureThe investors who bought those tokens, by contrast, faced strict restrictions on when they could sell.
DT Marks DEFI LLC, together with certain Trump family members, reportedly holds around 22.5 billion WLFI tokens.
Warren’s Political Moves Fall Short
During a recent CLARITY Act markup session, Warren introduced amendments specifically targeting the Trump family’s involvement in crypto markets.
Those amendments were voted down along party lines. The broader debate over crypto regulation continues, with the Warren letter adding pressure on the SEC at a moment when the agency is navigating both political crosswinds and calls from the industry for clearer rules.
Whether Atkins, who is widely viewed as friendly to the crypto sector, will take formal action remains to be seen.
Featured image from Drew Angerer/Getty Images, chart from TradingView
