Donald Trump Unveils Controversial Crypto Platform On Livestream
Republican presidential candidate Donald Trump promoted World Liberty Financial in a livestream on Monday, Sept. 16, according to Fortune.
World Liberty Financial is a decentralized finance (DeFi) service that allows peer lending and borrowing of crypto without the need for an intermediary bank.
The project will also include a non-transferable cryptocurrency token that allows holders to vote on governance decisions.
Trump, his sons, and their business partner Chase Herro announced the platform during a livestream on X Spaces. Though Trump personally provided few details on the service, he did comment on his stance on cryptocurrency in general. He called also for the U.S. to surpass China in the crypto sector.
Donald Trump Jr., meanwhile, commented on how the family has been affected by “debanking” or the denial of bank services since becoming involved in politics — an issue that DeFi platforms and crypto in general address.
Controversial Project Team
Despite their apparent ties to the project, Trump and his family will not own or operate the platform. Instead, Herro and another entrepreneur, Zachary Folkman, are reportedly operating the project.
Herro and Folkman have controversial reputations. Business Insider noted that both were involved with Dough Finance, a crypto platform hacked for $2 million in July.
The news site also highlighted Folkman’s pick-up artist business as well as numerous debts and lawsuits affecting the duo’s other business ventures.
Business Insider said it failed to obtain comments from either individual on their new Trump-linked crypto project. World Liberty Financial’s spokesperson, Jim Redner, told Business Insider he has been “kept in the dark” on the business and called it the “most unusual project [he has] ever been associated with.”
Regulatory Compliance Is Necessary
U.S. Securities and Exchange (SEC) Commissioner Mark Uyeda commented on the project’s regulatory obligations in conversation with Fox Business’ Eleanor Terrett.
Though he declined to comment on World Liberty Financial specifically, he said that all projects must “navigate the same confusing and opaque process” because the SEC has not offered clear guidance on registration. He advised all crypto entrepreneurs to hire strong lawyers and concluded: “Godspeed to them.”
Trump’s crypto ventures are relevant to the changing crypto landscape in the United States. Though Trump once held a negative stance toward crypto, he expressed support for the crypto industry throughout his latest presidential campaign and even spoke at an American Bitcoin conference this summer.
Another shift may be underway on the other side of the aisle. Reports suggest that Democratic presidential candidate Kamala Harris could be more accommodating to crypto than President Joe Biden while maintaining safeguards.
