WLFI Probe, Stablecoin Bill Talks, and Treasury Crypto Stance
Developments in the crypto sector on Thursday included a House inquiry into World Liberty Financial’s financing tied to the United Arab Emirates, reported industry proposals aimed at advancing the stalled U.S. market structure bill, and U.S. Treasury guidance indicating there will be no government backstop for Bitcoin or other digital assets during market stress.
Trump-linked WLFI under House scrutiny over $500M UAE investment
World Liberty Financial (WLFI), a crypto firm associated with U.S. President Donald Trump’s family, is facing questions from House Democrats regarding a reported $500 million investment by an entity connected to a member of Abu Dhabi’s ruling family.
Representative Ro Khanna of California said on X on Thursday that he opened an inquiry into the WLFI financing. He cited concerns over “public trust and transparency” and referenced a Wall Street Journal report that he also asked a U.S. attorney to examine the matter.
The move follows Trump’s comments on Monday denying direct knowledge of the $500 million stake, saying, “My sons are handling that — my family is handling it.”
Sheikh Tahnoon bin Zayed Al Nahyan and US President Donald Trump in the White House on March 18, 2025. Source: Truth Social
The Wall Street Journal reported the investment was backed by Sheikh Tahnoon bin Zayed Al Nahyan, an Emirati official who has served as the UAE’s National Security Adviser since 2016.
Crypto firms propose concessions to advance market structure bill: Report
Crypto companies are reportedly offering compromises on stablecoin-related provisions to help move the broader market structure legislation through the Senate. The bill passed the House but has been held up amid debate over whether stablecoin issuers can offer yields, with banks arguing this could divert deposits from traditional savings accounts.
Bloomberg, citing unnamed sources, reported that industry proposals now include granting community banks a larger role in the stablecoin ecosystem. Suggested measures include requiring issuers to hold reserves at community banks and facilitating partnerships that allow community banks to issue their own stablecoins.
U.S. Treasury indicates no bailout for Bitcoin or broader crypto markets
Treasury Secretary Scott Bessent told Congress on Wednesday that the government does not have the authority to bail out Bitcoin or the wider crypto market during downturns. He emphasized that investors should not expect an implicit safety net for decentralized assets.
“I am Secretary of the Treasury. I do not have the authority to do that, and as chair of the Financial Stability Oversight Council (FSOC), I do not have that authority,” Bessent said when asked about the possibility of government support for Bitcoin in a crisis.
The remarks come amid a broad market pullback, with Bitcoin sliding toward the low $70,000 range and Ether dropping below $2,200.
Scott Bessent testifies before Congress. Source: CNBC
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