- WLFI plans a USD1 stablecoin airdrop to reward $WLFI holders and test infrastructure despite SEC scrutiny and political concerns.
- The airdrop proposal is open to governance feedback but WLFI reserves the right to alter terms post-approval, adding uncertainty.
- Lawmakers demand SEC transparency on WLFI and Trump ties, raising ethics concerns and fears of compromised crypto oversight.
World Liberty Financial (WLFI), a DeFi project linked to Donald Trump and his sons, has proposed a test airdrop of its USD1 stablecoin. The initiative aims to reward current $WLFI holders while testing its airdrop infrastructure in a live setting. The proposal outlines a fixed distribution to eligible wallets on Ethereum. However, the amount depends on the total number of wallets and available funds.
WLFI launched its $WLFI token on October 15, 2024, through a securities-exempt offering. Since then, it has raised $550 million. Notably, $400 million is reportedly connected to the Trump family’s financial interests. Hence, this connection is stirring major political concerns.
Governance Vote, But Final Terms Uncertain
The firm published the airdrop proposal on Monday, opening the door for community feedback and a formal governance vote. However, WLFI has stated it can cancel or alter the plan at any time, even post-approval. Additionally, the final eligibility requirements are yet to be confirmed. This leaves early supporters awaiting clarity.
Besides showcasing USD1 to the community, the airdrop will help validate WLFI’s distribution model. Consequently, many are watching to see how the system performs in a real-world trial. The firm maintains that the airdrop serves technical goals rather than market speculation.
Lawmakers Demand SEC Transparency
Political figures are pushing back. On April 2, Senator Elizabeth Warren and Representative Maxine Waters sent a four-page letter to SEC Acting Chairman Mark Uyeda. The letter demands records, emails, and communications related to WLFI. Lawmakers want details on potential conflicts involving the Trump family and the halted investigation into crypto figure Justin Sun.
Moreover, the letter raises concerns over whether ethics officials reviewed the Trump family’s crypto ties. It also questions whether the SEC received White House direction in handling the Sun case or WLFI operations.
The lawmakers argue this could represent a serious ethical lapse. They say the Trump family’s role in WLFI may distort regulatory outcomes. Consequently, public trust in federal oversight of crypto could erode.
