‘World Liberty Financial will make it way harder’ for crypto legislation – Why?
The market was pricing only a 30% chance of the CLARITY Act becoming law in 2025.
Key Takeaways
The expected passage of the crypto market structure bill in September could face headwinds after the Trump family reportedly made over $5 billion from WLFI.
World Liberty Financial [WLFI] has hit headlines after its token became tradable to the public, and the latest update could impact the entire sector.
According to Jake Chervinsky, Legal Chief at crypto VC Variant Fund, the President Donald Trump-backed WLFI could make it ‘harder’ to pass the crypto market structure bill.
“World Liberty Financial will make it way harder to get market structure legislation done in the Senate, where we need 7 Democrats to vote YES.”
He added that it would be “politically challenging” to convince the seven Democrats to support the crypto market structure, currently in the Senate, to vote for it.
Chervinsky’s caution was linked to reports of conflict-of-interest concerns linked to the Trump family.
Trump’s family WLFI stake hit $5B
According to a Fortune report, Trump-affiliated firms control about 22.5 billion WLFI tokens, or nearly a quarter of the total supply of 100 billion.
As of press time value of about $0.23 per token, Trump’s family stake surged to about $5 billion, the report added.
World Liberty Financial markets itself as a “new era of finance” and a DeFi project that some speculate will be like the Aave [AAVE] lending platform. So far, the project has made a successful stablecoin product, USD1.
But Trump’s crypto interest also includes the controversial Official Trump [TRUMP] memecoin and others.
‘It’s corruption, plain and simple’
As a result, his pro-crypto regulation push has been met with scrutiny and doubt, especially amongst Democrats.
In fact, Senator Elizabeth Warren said that the recent paper profit from Trump’s WLFI holding was “corruption.”
In May, Democrats led by Warren strongly opposed the stablecoin bill, the GENIUS Act, and nearly succeeded in blocking its passage. They cited Trump’s conflict of interest, especially with the USD1 stablecoin.
Will Democrats front another holdout in September against the comprehensive crypto market structure bill, the CLARITY Act? Well, Chervinsky thinks so.
In fact, Dennis Porter, a crypto advocate and founder of the Satoshi Action Fund, also echoed Chervinsky’s views.
“Agreed. This is a bigger problem than people are willing to admit.”
Even the market was still uncertain whether the bill would be done this year, let alone this month.
Market odds show headwinds
According to Polymarket, the chance of passage of the CLARITY Act in 2025 was at 30%.
This was a 57% drop since July, underscoring the upcoming headwinds for the bill, especially amid Trump’s vast crypto interests.
