The Trump family’s crypto company World Liberty Financial started trading under the symbol $WLFI. Its close ties to the president may pose challenges to the passage of the market structure legislation.
Impact of World Liberty on the Bill
The market structure legislation, particularly the CLARITY Act, aims to establish a regulatory framework for cryptocurrencies, including stablecoins issued by World Liberty Financial. Experts are questioning how the company may impede the progress of this bill.
Political Risks and the Bill
Lawyer and crypto expert Jake Chervinsky raised concerns regarding potential conflicts of interest tied to the company's activities. He indicated that many lawmakers may be reluctant to support the legislation due to the president's personal financial interests, adding political risk to crypto market structure reform.
Prospects of Passaging the Bill
Despite the concerns, some senators, such as Cynthia Lummis, are optimistic about the bill's passage through the Senate Banking Committee. She hopes the bill will be ready before the end of the year. However, there are views suggesting that the likelihood of its passage is near zero due to the connections with Trump's interests.
Thus, the crypto company World Liberty Financial may significantly complicate the passage of an important market structure bill, highlighting the need to analyze political connections in this sector.
