Trump’s New Crypto Venture: Lacking Details, Risking Ethical Concerns

Former President Donald Trump has officially expressed his support for World Liberty Financial, a cryptocurrency venture that some critics claim lacks clear objectives and could create ethical dilemmas for a potential future administration. This announcement marks a significant shift from Trump’s previous stance on cryptocurrencies, which he once dismissed as a “scam.”

During a livestream event on X, Trump, accompanied by his two adult sons and several individuals involved in the new business, emphasized the importance of cryptocurrency, stating, “Crypto is one of those things we have to do.” Trump indicated he would attempt to reduce regulatory constraints on the industry if he wins the presidential election in 2024.

“Right now, you have a very hostile [Securities and Exchange Commission]. They’ve been very hostile toward crypto,” he stated. “My attitude is different.”

The details surrounding World Liberty Financial, including Trump’s potential role and any financial compensation he might receive, remain vague. The company’s website features a prominent image of Trump speaking at a podium and suggests that it will issue its own cryptocurrency token, denoted as $WL. The company claims it aims to empower users to manage their finances without interference from government authorities.

However, experts in the field have expressed skepticism about the clarity of the business model. James Butterfill, head of research at CoinShares, noted that the site offers little information beyond “buzzwords,” failing to clarify what services will be provided and how profits will be shared among stakeholders.

Ethics watchdogs have raised alarms about potential conflicts of interest involved in a presidential candidate launching a new business in such a controversial and largely unregulated sector. Jordan Libowitz, a spokesperson for Citizens for Responsibility and Ethics in Washington (CREW), emphasized that a Trump administration could influence cryptocurrency policies in ways that could conflict with national interests.

Libowitz stated, “We’re still in the Wild West with crypto. It’s clear there is going to be some regulation, but to what extent and how friendly they are to the industry, we don’t yet know.” He also highlighted that the president appoints officials who will oversee these regulations.

In response to concerns about ethics surrounding Trump’s involvement with World Liberty Financial, Steven Cheung, a spokesperson for Trump’s campaign, labeled any ethical implications as unfounded. Cheung asserted that Trump is “the most ethical president in American history,” and pointed to Trump’s previous efforts to separate himself from his businesses while in office.

Trump’s adult sons, Donald Trump Jr. and Eric Trump, have been actively promoting World Liberty Financial on social media. A report also indicated that Trump’s youngest son, Barron, 18, will play a role in the company.

Steve Witkoff, a billionaire and close associate of Trump, appeared during the livestream and downplayed any concerns regarding conflicts of interest. He indicated that if Trump is elected, any business interests will be placed in a trust managed by family members.

Danielle Brian, executive director of the Project on Government Oversight, cautioned that this arrangement would not resolve potential conflicts of interest. She remarked, “A trust managed by family members will not eliminate the conflict of interest created by a sitting president owning any business.”

Trump’s transition from skeptic to proponent of cryptocurrency has been notable. During his presidency, he publicly criticized crypto markets as being “highly volatile and based on thin air.” In 2021, shortly after leaving the White House, he referred to cryptocurrencies as a “scam.” However, in his 2024 campaign, he has begun aligning himself with crypto interests.

In May, Trump’s campaign announced it would accept cryptocurrency donations and he has hosted numerous industry advocates at his properties. At the annual Bitcoin Conference in July, Trump boldly proclaimed his vision to establish the United States as the “crypto super-power” globally.