Trump Family’s Crypto Venture May Struggle Due to Critical Challenges, Experts Warn
Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.
The Trump family is launching World Liberty Financial (WLF) to boost the US dollar’s presence in the crypto sector, specifically within decentralized finance (DeFi).
This project seeks to use DeFi to keep the dollar at the forefront of global digital currencies. It highlights the Trump family’s growing involvement in cryptocurrencies and their effort to combine traditional US financial strategies with blockchain technology.
This week, WLF announced its mission to secure the US’ financial leadership by spreading US-pegged stablecoins around the world.
Nonetheless, experts highlight that the project faces significant hurdles which might prevent its success.
Considering the ongoing regulatory scrutiny on DeFi and stablecoins, WLF may encounter several challenges. The SEC and other US regulatory bodies are closely examining DeFi platforms to decide if they fall under existing securities laws or need new regulations.
They have sent Wells Notices to major platforms like Uniswap, signaling that these platforms may need to register as securities exchanges or comply with rules usually applied to centralized financial institutions.
In line with this, Vijay Pravin, CEO at bitsCrunch, said WLF must comply with KYC and AML regulations. He pointed out a key challenge that the project faces — building partnerships with banks and exchanges across different regulatory environments.
He noted that some countries, cautious of US economic influence, might resist or limit the use of US dollar-backed stablecoins. This situation resembles BRICS nations’ efforts to promote commodity trade in non-US dollar currencies, he
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