On Thursday, CNBC reported that a group of House Democrats is urging the Treasury Department to investigate potential conflicts of interest and national security risks related to World Liberty Financial (WLFI), a cryptocurrency venture linked to the Trump family.
In a letter sent to Treasury Secretary Scott Bessent, over 40 Democratic lawmakers, led by Representative Gregory Meeks of New York, called for a formal review of the company’s structure and its foreign investment connections. This follows a contentious House Financial Services Committee hearing earlier this month, where Meeks strongly criticized Bessent, calling him a “flunky” of President Trump.
Meeks also highlighted concerns about a $500 million investment in World Liberty Financial made last year by Sheikh Tahnoon bin Zayed Al Nahyan, a member of the UAE royal family sometimes referred to as the “spy sheikh.” In a statement, Meeks said the deal raises both financial and national security concerns.
“The Trump family’s $500 million deal connected to the Emirati royal family is not only a matter of national financial instability, but it also carries serious national security implications,” he stated.
The lawmakers’ request comes as World Liberty Financial seeks a national bank charter. Democrats are seeking guarantees that the chartering process remains free from political or foreign influence, arguing the issue goes beyond a technical debate over cryptocurrency regulation.
“This is no longer just a debate about crypto chartering theory,” they wrote. “It is about foreign ownership, national security, regulatory integrity, and whether our bank-chartering process is resilient to political and geopolitical pressure.”
The group asked Treasury officials to outline safeguards preventing foreign governments, their proxies, or politically connected investors from using the national bank chartering process to gain leverage within the U.S. financial system or access sensitive infrastructure.
They also requested clarification on any role played by the White House, the Office of Management and Budget, and the Treasury Department in reviewing or influencing charter decisions made by the Office of the Comptroller of the Currency. The lawmakers asked for a response by February 26.
In closing, they emphasized the broader implications for public trust: “The credibility of America’s banking regulatory framework, and of the institutions charged with protecting it, depends on transparency, independence, and a demonstrated willingness to resist undue influence.”
As of this writing, World Liberty Financial’s native cryptocurrency, WLFI, is trading at $0.1168, down 3% over the past 24 hours. However, according to CoinGecko data, it has risen nearly 10% over the past week.
Frequently Asked Questions
FAQs House Democrats Call for Treasury Investigation Into Trump Familys Cryptocurrency Business
Q1 What is this story about in simple terms
A A group of Democratic lawmakers in the US House of Representatives has formally asked the Treasury Department to investigate a cryptocurrency company launched by Donald Trumps son Donald Trump Jr They are concerned the business might be used to evade sanctions or launder money especially from foreign actors
Q2 Why are House Democrats calling for this investigation
A They cite potential national security risks Their primary concern is that the Trump Digital Trading Cards and related crypto ventures could be exploited by sanctioned individuals foreign adversaries or other bad actors to funnel money to the Trump family potentially influencing politics or bypassing US laws
Q3 What specific cryptocurrency business is being questioned
A The focus is on Trump Digital Trading Cards a series of NFT collections launched by Donald Trump and the broader crypto activities promoted by Trump Jr The request also mentions the need to examine any ties to a crypto platform called TrumpCoin
Q4 What is an NFT and how is it related to cryptocurrency
A An NFT is a unique digital certificate of ownership for an item stored on a blockchain Its bought and sold using cryptocurrency The Trump Digital Trading Cards are NFTs so the business operates within the crypto ecosystem
Q5 What laws or rules might have been broken
A The lawmakers are asking investigators to look for potential violations of
Sanctions laws Prohibiting business with individuals or entities from sanctioned countries
AntiMoney Laundering rules Requirements for financial businesses to verify customer identities and report suspicious transactions
Bank Secrecy Act A key US AML law
Q6 Has the Trump family done anything illegal here
A As of now no charges have been filed and no illegality has been proven The House Democrats letter is a request for an investigation based on their concerns about potential vulnerabilities and risks not a statement of confirmed wrongdoing
Q7 What happens next
A The Treasury Department through its enforcement arm