World Liberty Financial (WLFI), the Trump crypto platform, rejected congressional scrutiny in a direct response dated May 15. The letter, sent to Senator Richard Blumenthal, called the investigation request “fundamentally flawed.”
WLFI co-founder Zach Witkoff confirmed the legal team authored the reply. Instead of addressing individual allegations, the firm claimed it was “too busy building” and refused to be distracted by what it described as regulatory overreach.
“The Company rejects the false choice between innovation and oversight,”
the letter stated.
“What it opposes is the misuses of regulatory authority and uncertainty to suppress lawful innovation.”
Although the letter challenged the basis of the inquiry, it didn’t name specific inaccuracies or explain the nature of the claims.
WLFI’s Stablecoin USD1 Used in $2B Binance Settlement
Meanwhile, WLFI’s stablecoin USD1, launched in March 2025, became part of a $2 billion crypto settlement. In May, an Abu Dhabi-based firm said it would use USD1 to transfer funds to Binance.
Previously, U.S. regulators investigated Binance, heightening concerns. Senator Blumenthal cited this transaction in a May 6 letter to WLFI, flagging potential national security risks.
“WLFI’s financial entanglements with the President, his family, and the Trump Administration present unprecedented conflicts of interest,” Blumenthal wrote.
So far, WLFI has not named the Abu Dhabi firm or confirmed its involvement in the Binance deal. At the same time, it has not denied any link.
GENIUS Act Could Impact Trump Crypto Platform
At the federal level, the GENIUS Act remains under review. The bill would classify stablecoins like USD1 as payment instruments. Because WLFI operates a Trump crypto platform, lawmakers raised concerns over whether Donald Trump could benefit if he influences or signs the bill into law.
As of May 16, no final text addressed this issue. Still, Democrats continue pushing for changes to the GENIUS Act that would block any financial benefit to Trump.
WLFI has stayed silent on the potential impact of the GENIUS Act. However, lawmakers want clear rules that separate personal profit from policymaking. Currently, the bill remains active in a Republican-controlled Congress, but no vote is scheduled yet.
Cointelegraph contacted Senator Blumenthal’s office for comment. His team did not respond by publication time.
Trump Memecoin Dinner Adds More Tension
Separately, the Trump memecoin promoted an exclusive dinner scheduled for May 22. The invitation targets major tokenholders. This raised more questions in Congress about how closely political branding connects to WLFI’s financial tools.
Although WLFI has not confirmed involvement, lawmakers pointed to overlapping timelines and shared branding between the Trump crypto platform and the memecoin. They warned the public could mistake political content for investment promotion.
No list of dinner attendees or memecoin investors has been released. WLFI has also not disclosed token sales or revenue related to the memecoin.
The Trump crypto platform now faces multiple fronts of scrutiny, from its stablecoin deal to memecoin activities, as pressure from lawmakers builds.
