Having previously called cryptocurrencies a “scam,” former President Donald Trump on Monday formally endorsed World Liberty Financial, a cryptocurrency venture whose business plan is still largely unknown but has already come under fire as a potential ethical crisis for his administration should he win reelection in January.
In a livestream on X on Monday, Trump—accompanied by his two adult sons and other prominent figures in the startup industry, such as billionaire donor Steve Witkoff—stated that “crypto is one of those things we have to do” and hinted that, should he win, he would seek to reduce industry regulation.
Right now, you have a very hostile [Security and Exchange Commission]… they’ve been very hostile toward cryptocurrency,” Trump stated. “My attitude is different.”
There are still many unanswered questions regarding the project, including Trump’s involvement and possible pay. The platform will reportedly have its own cryptocurrency token, $WL, according to the company’s website, which features a photo of a backlit Trump speaking at a podium. The website also claims to “empower our users to operate their finances… with no direct oversight of any government agencies or officials.”
Few details about the company, such as what it will offer, who will have access to its profits, and how the Trump family stands to profit, are provided on the website, according to industry experts. Digital asset management company CoinShares’ head of research, James Butterfill, told that the website is essentially just full of “buzzwords.”
The potential conflicts of interest posed by a presidential candidate starting a new business or getting involved in it in any way within weeks of Election Day were quickly pointed out by government ethics watchdogs. This was especially true for a sector as divisive and unregulated as cryptocurrency, where users exchange digital currencies directly without the supervision of banks or the government.
A spokesman for Citizens for Responsibility and Ethics in Washington, or CREW, Jordan Libowitz, stated that a future Trump administration would have broad authority to influence cryptocurrency policy, and that Trump’s own financial interest in the sector may conflict with the nation’s best interests.
“With cryptocurrency, we’re still in the Wild West. It’s obvious that regulations will exist, but it’s unclear how much and how industry-friendly they will be, according to Libowitz. “The president obviously appoints the people in charge of that.”
Speaking on behalf of the Trump campaign, Steven Cheung dismissed any notion that the president’s involvement with World Liberty Financial might present an ethical conundrum should he be reelected, labeling Trump as “the most ethical president in American history.”
According to Cheung, President Trump gave up his highly lucrative and successful businesses when he first announced his candidacy because he believed that saving America was the most important job he had ever had. He made sure everything was done in accordance with the established ethics guidelines before he entered the White House.
Trump’s youngest son, Barron, 18, was also supposed to be involved in World Liberty Financial, according to a purported “white paper” that was initially leaked by CoinBase. Trump’s adult sons, Donald Trump Jr. and Eric Trump, have been endorsing the company on social media for months.
Witkoff, who made an appearance on the X livestream on Monday, claimed to have introduced the Trumps to two other venture partners with a colorful past in business: Chase Herro and Zak Folkman.
Herro, who once referred to himself as a “dirtbag of the internet” during a cryptocurrency conference in 2018, claimed to have made millions from an e-commerce company following his three-year jail sentence for drug sales during his high school years. More than ten years ago, Folkman and Herro first partnered in the e-commerce industry. Folkman has allegedly previously taught classes on “how to date hotter girls.”
A close friend of Trump’s for a long time and one of the main financial backers of his campaign, Witkoff played down any potential problems that could arise from his venture into cryptocurrency on ABC’s “Good Morning America” on Tuesday.
All of the president’s assets, including his businesses, will be placed in some kind of trust if he is elected, as I believe he will be.” stated Witkoff. “I assume that his kids will be involved in managing it. Therefore, I don’t think there is a conflict.”
However, the Project On Government Oversight’s executive director, Danielle Brian, claimed that would only be “window dressing.”
According to Brian, having a family trust won’t remove the conflict of interest that comes with a sitting president owning a business.
With his announcement on Monday, Trump showed that he had changed from being an outspoken critic of digital currencies to one of its most ardent supporters. He bemoaned on Twitter as president, saying that cryptocurrency markets were “highly volatile and based on thin air.” Soon after leaving the White House in 2021, Trump referred to cryptocurrencies as a “scam.”
But Trump has gotten close to cryptocurrency interests while running for president in 2024.
His campaign declared that it would start taking cryptocurrency donations in May. Trump has welcomed industry enthusiasts to his properties on a regular basis, and he made a promise to turn the United States into the world’s “crypto super-power” in July at the annual Bitcoin Conference.
