Trump-Linked Token Faces SEC Scrutiny Over Unregistered Security Claims

A token issued by World Liberty Financial (WLF), a decentralized finance (DeFi) and stablecoin project linked to the Trump family, has raised concerns that it may be an unregistered security.

The claim was made by Lee Reiners, a Duke University instructor and former New York Federal Reserve examiner, in a blog post. According to Reiners, WLFI is unlikely to be classified as a pure digital commodity due to its sales method and marketing strategy.

WLF introduced WLFI in October 2024 as a voting token for a lending protocol, but it was sold before the protocol was built and was marketed using the Trump family name. This has raised questions about whether investors were led to expect profits from their investment.