Donald Trump, the President of the United States, is facing criticism that his cryptocurrency corporation "World Liberty Financial," which he founded with his sons, has blurred the lines between private corporations and government policy.
The New York Times (NYT) reported on the 29th of last month (local time) that the company has pressured foreign cryptocurrency corporations to purchase large amounts of its coins and has effectively provided 'access' to the Trump family as a way to generate revenue.
In particular, the company raises conflict of interest concerns because it is not just a simple corporation but is directly and indirectly connected to the presidential policy influence. President Trump introduced pro-cryptocurrency regulations during his tenure and weakened the oversight roles of the U.S. Securities and Exchange Commission (SEC) and the Department of Justice. He announced a 'digital asset reserve plan,' bringing cryptocurrencies into the realm of U.S. fiscal policy, and following that announcement, the main holding asset of World Liberty Financial, Ethereum, surged nearly 13%.
According to NYT, World Liberty Financial proposed 'mutual investments' with at least five cryptocurrency startups, demanding them to purchase coins worth between $10 million and $30 million. The offer to negotiate using personal ties to President Trump incited strong backlash in the industry, and many corporations perceived it as a 'unilateral funding demand' and rejected it. Dominic Schinner, the founder of the smart contract platform IOTA, said, "We immediately declined, noting that the approach was very dishonest."
Nevertheless, Trump's side maintains that "the assets are held in a trust and are unrelated to the presidency," asserting that there is no conflict of interest. NYT reported that the Trump family holds 60% of the company's equity and has the right to cash out up to 75% of the revenue from cryptocurrency sales.
It has also been revealed that Trump’s aides recently attended a digital asset summit held at the White House. Executives from World Liberty Financial, acting as aides to Trump, have also participated in the recent digital asset summit at the White House. Such appearances have been interpreted as exacerbating controversies over corporate promotion using political influence and collusion.
World Liberty Financial has sold over $550 million worth of coins so far, and it appears that funds from foreign investors in Hong Kong, Israel, and the United Arab Emirates have flowed in. Some investors are understood to be expecting policy support, such as regulatory approvals from the Trump administration.
NYT pointed out that such a structure could blur the boundaries between the private revenues of the presidential family and national policy. It also noted that attention is drawn to how World Liberty Financial will impact cryptocurrency policy and the industry landscape in the United States in the future.