Senate Democrats Probe Envoy’s WLFI and USD1 Crypto Stakes

Published: 2025-10-23 08:21:52 |

Eight Senate Democrats have asked U.S. Special Envoy Steve Witkoff to detail his crypto stakes in World Liberty Financial (WLFI) and the USD1 stablecoin. According to their October 31 deadline letter led by Senator Adam Schiff, Witkoff divested real estate but retained WLFI and USD1 positions even as he helped negotiate a $2 billion UAE crypto deal. Lawmakers warn these crypto stakes may breach federal ethics rules and pose a conflict of interest, especially given the timing of the UAE investment and the Trump family’s involvement. The probe underlines growing scrutiny of digital-asset ethics and could influence regulatory oversight of stablecoins and token issuers.

Neutral

While heightened scrutiny of Witkoff’s WLFI and USD1 holdings underscores regulatory risks, stablecoins like USD1 are designed to maintain a one-to-one peg and unlikely see immediate price swings. The probe may dampen market sentiment for WLFI tokens and similar projects in the short term as traders factor in potential oversight. However, longer-term effects should be limited if USD1 maintains its peg and issuers comply with ethics guidelines. Overall, the impact on USD1 and WLFI trading is expected to be neutral.