The post Trump Aims to Make U.S. the ‘Crypto Capital’ as He Launches New Venture appeared first on Coinpedia Fintech News
Former U.S. President Donald Trump is making bold promises to turn the U.S. into the “crypto capital of the planet” if he wins the upcoming presidential election. In his latest move, Trump enters the crypto space, questions are rising about how his new venture, World Liberty Financial (WLFI), might fit into existing regulatory frameworks.
Trump’s Tied Crypto WLFI
Donald Trump has introduced World Liberty Financial (WLFI), a platform centered around a non-transferable governance token. The WLFI token aims to reshape decentralized lending and governance.
.@worldlibertyfi pic.twitter.com/mwhVIzPJyq
— Donald J. Trump (@realDonaldTrump) August 29, 2024
Trump’s two eldest sons, Donald Jr. and Eric are also actively promoting this platform, posting about it on social media alongside his campaign.
The venture has left many wondering how it aligns with securities and anti-money laundering laws as Trump shifts from his prior skepticism about crypto during his presidency to now becoming a key advocate for the industry.
Questions Around WLFI’s Token Structure
World Liberty Financial plans to sell 30% of the tokens to raise $540 Million, with the remaining 70% being reserved for founders and project developers, according to an early white paper.
Meanwhile, the project’s structure might seem straightforward, but it raises significant concerns under U.S. securities laws.
Experts like Dave Rodman, managing partner of Rodman Law Group, warn that simply locking tokens or preventing transfers may not be enough to avoid securities regulations. If Americans purchase these tokens, the project could still be exposed to regulatory scrutiny.
Trump’s Crypto Advocacy
Trump has made his stance on crypto clear throughout his campaign, promising to install regulators that are friendly toward the industry. This shift from his previous position might benefit him personally, especially with the upcoming launch of World Liberty Financial.
World Liberty Financial’s success could hinge on these regulatory hurdles, but it’s clear that Donald Trump is betting big on the future of crypto.