Zach Witkoff, the co-founder of World Liberty Financial (WLFI), a crypto platform backed by the Donald Trump family, has dismissed concerns raised by US lawmakers regarding potential conflicts of interest with the president. In a letter dated May 15 addressed to Senator Richard Blumenthal, WLFI’s lawyers argued against an investigation into the crypto platform, citing flawed premises and inaccuracies. Witkoff emphasized that the company was focused on its development and considered oversight unnecessary at this stage. The letter affirmed WLFI’s commitment to innovation while denouncing the misuse of regulatory powers to hinder lawful progress. Blumenthal, a key figure in the US Senate Permanent Subcommittee on Investigations, has been vocal about investigating Trump’s connections to WLFI, especially in light of the TRUMP memecoin and its upcoming high-profile event for tokenholders on May 22. The ongoing debate surrounding the GENIUS Act, a bill recognizing stablecoins as payment instruments, could set a precedent for addressing concerns over potential conflicts of interest involving the president. The bill’s progress in the Republican-controlled Congress is being closely monitored by lawmakers. Of particular concern is WLFI’s USD1 stablecoin and its implications, including a recent $2-billion investment settlement with Binance using the stablecoin announced by an Abu Dhabi-based firm. Blumenthal highlighted the financial ties between WLFI, Trump, and his administration, raising issues of conflicts of interest and national security risks. Some Democrats have called for clarifications within the GENIUS Act to prevent Trump from benefiting personally from stablecoins influenced by legislation he may have influenced. However, the resolution of these concerns remains uncertain pending further legislative action. Cointelegraph’s attempts to obtain comments from Sen. Blumenthal’s office were unsuccessful at the time of reporting. The unfolding developments in the stablecoin bill debate underscore the complexities of addressing potential conflicts of interest in the crypto space involving prominent political figures.
