[NEWS] Trump launches new cryptocurrency-related business

Ex-President Donald Trump, Republican candidate for the US presidential election, formally announced his support for the Web 3.0 project "World Liberty Financial" on the 16th.

The company's business model remains unclear, but it is under scrutiny as it could become an ethical headache for the administration if Trump returns to the White House in January.

On the 16th, Trump, along with his two sons and others involved in cryptocurrency companies, including billionaire donor Steve Witkoff, declared in a live broadcast on X that "cryptocurrency is one of the things we have to do." He claimed that if elected, he would work on regulating cryptocurrency.

"Right now, the SEC is very hostile to cryptocurrency. My stance is different," he said.

No details about the venture, such as Trump's role in the cryptocurrency business or his compensation, have been released. 

The company's website features a backlit image of Trump speaking at a podium, suggests the platform has its own cryptocurrency called $WL, and aims to "allow users to manage their own assets without the direct oversight of government agencies or government officials." Cryptocurrency industry analysts said the website provides few details about the company, including what services it offers, who benefits from it, and how Trump and his family might benefit from it.

As the U.S. ethics watchdog noted, there could be potential conflicts of interest that arise from a presidential candidate launching or being involved in any way with a new business within weeks of Election Day, especially in a polarizing and unregulated industry like crypto, where users directly exchange digital currency without bank or government oversight.

A spokesman for Citizens for Responsibility and Ethics in Washington (CREW) said a future Trump administration would have broad powers to influence cryptocurrency policy, and noted that Trump's own personal interest in the cryptocurrency industry could run counter to the country's best interests.

He will be the first president to use Bitcoin for payments

A spokesperson for the Trump campaign denied that Trump's role in World Liberty Financial could pose an ethical dilemma if he were re-elected.

In fact, when President Trump first ran for president, he walked away from a very successful and profitable business. "Because the most important job is saving America," he said at the time. Before entering the White House, Trump made sure everything was done within established ethical guidelines. 

In addition to his sons Donald Trump Jr and Eric Trump, who have promoted World Liberty Financial, the white paper reported by Coinbase suggested that his youngest son, 18-year-old Barron, would also play a role in the company. 

Witkoff, who appeared on X's live stream on the 16th, said that he introduced the Trumps to two other partners in a cryptocurrency-related business, Zak Folkman and Chase Herro. Both have diverse business backgrounds.

It would be a good thing for the cryptocurrency industry to see such a big change from Trump, who once called cryptocurrency a fraud, to starting a cryptocurrency-related business.

It would certainly have a much better impact than the current Biden administration.

Before his campaign rally in Long Island, Trump visited Pubkey, a bar that accepts Bitcoin payments, and paid for burgers and beers for patrons with Bitcoin. After paying at the bar using his smartphone and tablet, Trump shouted out loud, "I just completed my first transaction with Bitcoin." It was like a victory declaration. He continued, "Let's make Bitcoin great again." He added, "Go vote. If you vote, we can't lose. I want everyone who agrees with you to vote. There are a lot of people who agree with you."

"This is one of the most historic transactions in Bitcoin history," Pubkey said in a post on X. He also explained that at an X event promoting World Liberty Financial, Trump's sons, including 18-year-old Barron Trump, encouraged him to embrace cryptocurrencies.

Reference: Reuters, World Liberty Financial
Image: Shutterstock

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