How the Crypto Market Structure Law Would Expose that Trump’s WLFI Isn't DeFi

Numerous stories have covered the ethical implications of a president trying to make the United States the crypto capital of the planet while building his own Trump‑branded crypto businesses. Most press has focused on the ethics concerns around the Trump family’s crypto dealings and their ties to foreign governments.

This story excited me because we look at how World Liberty Financial actually fares under proposed market structure rules. The results may surprise you. The bill could impose constraints, compliance costs, and new disclosures that make it a net negative for such a politically connected crypto firm. But the Trumps seem to love crypto as much as hotels and resorts, so if they’re here to stay, let’s see what work lies ahead as the U.S. moves from the gray zone into laws and statutes for this burgeoning industry.

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How the Crypto Market Structure Law Would Expose that Trump’s WLFI Isn't DeFi

Trump’s DeFi platform may force him to choose between regulatory credibility and personal profit, with consequences for the entire industry.

Since September 2024, President Trump's sons, Donald Jr., Eric, and Barron, have been building their DeFi project, World Liberty Financial, alongside long-time Trump ally Steve Witkoff’s sons, Zach and Alex Witkoff, and inking deals with top crypto firms such as Kraken, Aster Exchange, and Bithumb. 

The market cap of its WLFI token is at $3.52 billion, and its stablecoin USD1 was used as the settlement asset for a $2 billion investment by Abu Dhabi’s MGX into Binance, one of the largest stablecoin-funded crypto deals to date. USD1 has its own market cap of $2.7 billion, which is ranked 6th among stablecoins worldwide by market capitalization.

However, as our reporting shows, the WLFI project is structured in a way that it is highly unlikely to fit the definition of "decentralized" finance in a long-awaited market structure bill, which could create problems between the White House, Congress, and the broader industry. 

The legislation is winding its way through Congress, but the two biggest sticking points center on ethics and DeFi. Already, the White House has signaled that the president will not sign legislation that would include constraints on how he, his family, and inner circle operate in the crypto industry. 

Will Trump sign into law legislation that could handcuff his signature "DeFi" platform? And given that WLFI is centralized, will he and his family comply with the new law or could he try to argue that his project is different from the likes of Coinbase and Kraken? What would it mean for the new legislation if the president and his family seek a special carve-out for themselves? 

This is the kind of deep investigation that flags hidden risks and regulatory shifts before they affect your portfolio, helping you spot opportunities others miss.