U.S. Representative Gerald Connolly has called for immediate action to address concerns about President Donald Trump’s financial woes, particularly in the crypto space.
In a letter, Connolly asked the House Oversight and Government Reform Committee to investigate potential conflicts of interest related to Trump’s involvement in crypto projects, which he said could harm presidential ethics and transparency.
Trump’s Meme Corner: a threat to transparency and national security?
Connolly’s letter focuses on Trump’s role in launching World Liberty Financial (WLF), a crypto project inspired by Trump’s vision of financial independence.
Justin Sun, the founder of Tron, has reportedly made significant investments in WLF. Connoly said Justin Sun is a foreign entrepreneur under investigation by the US SEC for alleged securities fraud related to his own crypto businesses.
Sun’s $30 million investment in WLF tokens would have allowed the platform to meet its revenue goal, potentially funneling money directly to Trump and his family.
“The growing scope of President Trump’s – and by extension the Trump Organization’s – financial entanglements and quid pro quo promises is troubling,” Connolly wrote.
He insists that the Oversight Committee must investigate these companies under the provisions of the Presidential Ethics Reform Act. Although WLF tokens do not offer legitimate financial returns, Connolly warns that they are a simple mechanism for individuals and foreign entities to curry favor with the Trump family.
Trump’s other crypto implications have added to concerns about WLF. Just days before his inauguration, Trump released a coin called “TRUMP.”
The TRUMP token has already achieved a fully diluted valuation close to $40 billion. The “Official Trump” token, launched last week, saw a rapid rise of over 1,100%, going from $6 to $75 in a matter of hours. However, at the time of writing, it is trading at around $37.93.
Asked about TRUMP at a recent conference, the president was uncertain about the details.
“I don’t know where it is. I don’t know much about it, other than I started it, other than it was very successful,” Trump said.
Additionally, Congresswoman Maxine Waters said the TRUMP meme coin “represents the worst of cryptocurrencies.”
“Through his coin, Trump created a way to circumvent national security and anti-corruption laws, allowing interested parties to anonymously transfer money to him and his inner circle,” Waters said in a press release dated January 20.
She added that anyone in the world, including those sanctioned by the United States, can now trade and profit from TRUMP.
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