Source: Cointelegraph
Original: (WLFI co-founder ignores congressional regulatory concerns, claiming to be 'busy building' and unable to attend to regulation)
Zach Witkoff, one of the co-founders of the cryptocurrency platform World Liberty Financial (WLFI) supported by Donald Trump’s family, dismissed the request for a congressional investigation into the president's potential conflicts of interest.
In a letter to Senator Richard Blumenthal on May 15, a lawyer for World Liberty Financial claimed that calls for an investigation into the crypto platform were based on "fundamentally flawed assumptions and inaccurate information." Zach did not specifically address any allegations, stating that WLFI was "busy building" and unable to attend to regulation.
The letter stated: "The company refuses to make a false choice between innovation and regulation. What we oppose is the abuse of regulatory power and uncertainty to stifle legitimate innovation."
Blumenthal is a senior member of the U.S. Senate Permanent Subcommittee on Investigations and is one of many Democrats calling for an investigation into Trump's relationship with WLFI and his TRUMP meme coin, as well as pushing for legislative reform related to a dinner scheduled for May 22 for top token holders.
The (GENIUS Act) currently under congressional review aims to classify stablecoins as payment tools and may serve as a barometer for how lawmakers address potential conflicts of interest for the president.
One of the concerns Blumenthal and many U.S. lawmakers have regarding Trump’s relationship with WLFI is the USD1 stablecoin launched by the platform in March. An investment firm based in Abu Dhabi announced in May that it would use this stablecoin to settle a $2 billion investment in Binance, which had previously been a target of investigation by U.S. authorities.
Blumenthal wrote in a letter to Zach Witkoff on May 6: "WLFI's financial entanglements with the president, his family, and the Trump administration bring unprecedented conflicts of interest and national security risks, including potential violations of foreign compensation provisions."
Some Democrats are calling for explicit provisions in the (GENIUS Act) to ensure that Trump cannot personally profit from stablecoin legislation that he may influence and have the opportunity to sign into law. However, as of May 16, it remains unclear whether future votes on the bill will address these concerns. Cointelegraph has reached out to Senator Blumenthal's office for comment but has not received a response as of publication.
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