World Liberty Financial Responds to Senate Investigation on Stablecoin

World Liberty Financial (WLF) has publicly criticized a probe led by Senator Richard Blumenthal, which focuses on the company's USD1 stablecoin and potential conflicts of interest

Senator Richard Blumenthal is facing criticism from World Liberty Financial (WLF) over his probe into the company’s USD1 stablecoin and potential conflicts of interest linked to President Trump’s crypto ventures.

The probe, which began with letters from Blumenthal’s aides at the Senate Permanent Subcommittee on Investigations, has now reached its final stages.

However, in a statement released on Wednesday, WLF slammed the inquiry, asserting that it’s based on flawed assumptions and lacks merit. The company also raised concerns about the fairness of Blumenthal’s inquiries.

“The subject matter of the Subcommittee’s inquiry is a company that is attempting to introduce a U.S.-issued stablecoin to the global financial markets and the role of former President Trump and his family members in that endeavor,” WLF’s attorneys said in a statement.

“The Subcommittee’s interest in this company and its endeavors is part of a broader and critical discussion about the appropriate balance between the need for strong economic and financial policy and the potential for foreign interference in that policy.”

Blumenthal, a key figure in the subcommittee, recently contacted WLF and Fight Fight Fight LLC—the company behind the Trump memecoin—regarding possible breaches of federal law. He suggests that the firms might be involved in deceptive practices and foreign influence.

The senator is particularly concerned about potential violations related to Trump’s financial gains from the companies, calling for detailed transparency about their financial structures.

President Trump and his sons—Donald Trump Jr. and Eric Trump—have all been involved with WLF in some capacity. Each has taken on an ambassadorial or advocacy role for the company’s DeFi project.

These connections have led to speculations about conflicts of interest, which Blumenthal touched upon in his letters.

Blumenthal is skeptical about the company’s claims of having no foreign investors and is investigating how the firms’ financial ties could benefit foreign entities.

Moreover, Blumenthal expressed concerns about the security implications of WLF’s USD1 stablecoin, which was used to secure a record $2 billion investment from MGX to close Binance’s deal.

The senator suggests that Trump’s involvement with WLF may encourage foreign governments and “unscrupulous” individuals to invest in ways that could compromise national security.

In response to Blumenthal’s claims, WLF’s attorneys, from the firm BakerHostetler, rejected the assertions, stating that the company was under no legal obligation to respond to the probe.

They defended the company’s role in supporting the U.S. dollar and clarified that USD1 is a fully reserved stablecoin backed by U.S. Treasuries and cash equivalents. The legal team emphasized that their goal is to enhance U.S. financial influence globally, not undermine it.