Source: Cointelegraph
Original: “WLFI Co-founder Ignores Congressional Regulatory Concerns, Claims 'Busy Building' and Unconcerned with Regulation”
Zach Witkoff, one of the co-founders of the crypto platform World Liberty Financial (WLFI), supported by the family of Donald Trump, dismissed U.S. lawmakers' requests to investigate potential conflicts of interest involving the president.
In a letter to Senator Richard Blumenthal dated May 15, lawyers for World Liberty Financial claimed that the calls for an investigation into the crypto platform were based on “fundamentally flawed assumptions and inaccurate information.” Zach did not specifically address any allegations, stating that WLFI is “busy building” and has no time for regulation.
The letter stated: “The company refuses to make the wrong choice between innovation and regulation. What we oppose is the abuse of regulatory power and uncertainty to suppress legitimate innovation.”
Blumenthal is a senior member of the U.S. Senate Permanent Subcommittee on Investigations and is one of many Democrats calling for an investigation into the relationship between Trump and WLFI, as well as his TRUMP meme coin and a dinner scheduled for May 22 for top token holders.
The “GENIUS Act,” currently under consideration in Congress, aims to classify stablecoins as payment instruments and may serve as a barometer for how lawmakers address potential conflicts of interest involving the president.
One of the concerns raised by Blumenthal and many U.S. lawmakers regarding Trump's relationship with WLFI is the USD1 stablecoin launched by the platform in March. An investment firm based in Abu Dhabi announced in May that it would use the stablecoin to settle a $2 billion investment in Binance, which had previously been a target of U.S. authorities' investigations.
In a letter to Zach Witkoff dated May 6, Blumenthal wrote: “WLFI's financial entanglements with the president, his family, and the Trump administration present unprecedented conflicts of interest and national security risks, including potential violations of foreign compensation provisions.”
Some Democrats are calling for explicit provisions in the “GENIUS Act” to ensure that Trump cannot personally profit from stablecoin legislation that he may influence and have the opportunity to sign into law. However, as of May 16, it remains unclear whether future votes on the bill will address these concerns. Cointelegraph has reached out to Senator Blumenthal's office for comment but has not received a response as of publication.
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