Trump-Backed WLFI Co-Founder Dismisses Congressional Oversight Concerns: “We’re Too Busy Building”

World Liberty Financial Inc. (WLFI), a cryptocurrency firm tied to the Trump family, has publicly dismissed regulatory concerns raised by U.S. lawmakers, with co-founder Zach Witkoff emphasizing the company’s focus on building its flagship stablecoin, USD1. In a post on X dated May 15, 2025, Witkoff shared that WLFI’s legal team responded to a letter from Senator Richard Blumenthal. The response, addressed the senator’s inquiry into WLFI’s operations, with Witkoff stating, “America — and the rest of the world — needs solutions like USD1. We will not be intimidated by politicians with an axe to grind: we’re too busy building.”

Witkoff Responds to Congressional Scrutiny

World Liberty Financial Inc. (WLFI) is a DeFi project backed by the Trump family. The company launched USD1 in March 2025, a fully reserved stablecoin backed by U.S. Treasuries and cash equivalents, aimed at providing global access to dollar-denominated financial tools, particularly for unbanked populations. USD1’s reserves are held by BitGo, a regulated custodian, ensuring transparency. However, WLFI’s connection to the Trump family has drawn scrutiny from Democrats, who have raised concerns about potential conflicts of interest. On May 7, 2025, Democratic Senators Jeff Merkley and Chuck Schumer introduced the End Crypto Corruption Act of 2025, a bill seeking to prohibit the president, vice president, senior executive branch officials, members of Congress, and their families from issuing or endorsing cryptocurrencies, citing risks of corruption and undue influence on government policy.

In response to Senator Richard Blumenthal’s inquiry, Witkoff criticized the senator’s letter for containing “unfounded assertions of non-existent relationships,” though he did not provide specific evidence to rebut the concerns. In the BakerHostetler letter dated May 15, 2025, Witkoff explicitly denied any formal or informal affiliation between WLFI and Fight, Fight, Fight, LLC—the operator of a Trump-related memecoin—or its chief executive officer, Bill Zanker. He emphasized that WLFI adheres strictly to all legal and regulatory obligations, including due diligence requirements, to ensure compliance. Witkoff also opposed the “misuse of regulatory authority and uncertainty to suppress lawful innovation,” advocating for a regulatory environment that fosters innovation while maintaining the U.S. dollar’s global financial dominance.

Blumenthal Fires Back at WLFI’s Response

On May 17, 2025, Senator Richard Blumenthal responded sharply to WLFI’s dismissal of his inquiry, to criticize the company’s reaction. Quoting Witkoff’s response, Blumenthal stated, “Clearly, we struck a nerve with our simple, straightforward questions to World Liberty Financial. Maybe their hyper sensitivity to factual answers indicates they have something to hide.” He further suggested that the Trump family’s involvement might be masking deeper issues, adding, “Or perhaps Trump’s cronies know that the only asset behind Trump’s corrupt crypto venture is Trump’s name—his unconstitutional abuses of power. World Liberty Financial is dodging disclosure and concealing facts because it’s a convoluted racket of grift & corruption. I’ll continue to demand accountability and transparency for the American people.” Blumenthal’s pointed remarks underscore the growing tension between WLFI and lawmakers over transparency in the crypto sector.

Congressional Oversight and the GENIUS Act

Blumenthal’s inquiry comes amid heightened scrutiny of WLFI due to its ties to the Trump family, raising concerns about potential conflicts of interest. This tension has intersected with ongoing legislative efforts to regulate stablecoins through the GENIUS Act. Initially, Senate Democrats withdrew support for the bill, citing concerns over the Trump family’s crypto business interests. However, bipartisan cooperation led to a revised draft submitted to the Senate, softening language targeting Trump-related crypto ventures while imposing restrictions on tech giants issuing stablecoins.

The amended GENIUS Act, set for a Senate vote today, May 19, 2025, aims to establish a comprehensive regulatory framework for stablecoins, ensuring consumer protection and financial stability. The revisions reflect a delicate balance between advancing innovation and addressing potential conflicts, however, WLFI’s dismissive stance could complicate its relationship with regulators as the bill progresses.

Challenges and Implications

WLFI’s focus on building USD1 over engaging with regulatory concerns could pose risks. While the company asserts its commitment to compliance, its dismissive tone may draw further scrutiny from lawmakers, especially as the GENIUS Act vote unfolds today. For users, USD1’s promise of financial inclusion is appealing, particularly for the unbanked, but regulatory uncertainty could hinder its adoption if WLFI fails to navigate the evolving legal landscape.

The outcome of the GENIUS Act vote will likely set the tone for stablecoin oversight in the U.S., potentially impacting WLFI’s operations and growth strategy. If passed, the bill could impose clear requirements on stablecoin issuers, affecting how USD1 operates and competes in the market. As the Senate votes on the GENIUS Act today, the crypto industry is closely monitoring the bill’s latest developments, anticipating its potential impact on the regulatory landscape.