Democratic Congresswoman Maxine Waters called out the Trump family-promoted World Liberty Financial during a congressional hearing on Capitol Hill Tuesday on decentralized finance (DeFi).
Democratic Congresswoman Maxine Waters called out the Trump family-promoted World Liberty Financial during a congressional hearing on Capitol Hill Tuesday on decentralized finance (DeFi).
The discussion was sparked by recent events where X accounts belonging to Tiffany Trump and RNC Chairwoman Lara Trump were hacked. The compromised accounts were used to promote a fake token allegedly linked to World Liberty Financial.
"Because of the prominence of those behind the project, bad actors took advantage of the opportunity to scam potential users," Waters stated, emphasizing the need for stronger protective measures against such scams.
Mark Allen Hays, a Senior Policy Analyst at Americans for Financial Reform, drew parallels between World Liberty Financial and previous celebrity-backed crypto ventures, warning that such promotions often involve assets with "little real-world tangible value."
The hearing, hosted by the House Subcommittee on Digital Assets, Financial Technology and Inclusion, revealed a partisan divide on regulatory approaches to DeFi.
While Republican lawmakers, led by Congressman French Hill, viewed enforcement actions as potentially existential threats to the industry, Democrats, represented by Congressman Stephen Lynch, advocated for "proper legislation" to ensure the sector's survival.
The congressional hearing also touched on broader issues within the DeFi space, including hacks, scams, information asymmetry, and conflicts of interest.
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