Former President Donald Trump’s DeFi project, World Liberty Financial, will not be exempt from the strict and opaque regulations imposed on U.S.-based crypto firms, according to SEC Commissioner Mark Uyeda.
In an upcoming interview with Fox Business reporter Eleanor Terrett, Uyeda acknowledged the challenges Trump’s project will face as it navigates the complex regulatory environment for digital assets.
He clarified, however, that the measures would largely concern disclosure requirements and that the SEC would not act as a “merit regulator.”
He said:
“The Commission is a disclosure regulator, not a merit regulator. We do not judge the merits or risks of any particular project, so I am concerned about any request that prompts us to do so.”
His comments come amid speculation that the Democratic Party could push for a regulatory crackdown on the company because of the deep partisan divide.
Uyeda, who has been an SEC commissioner since June 2022, stressed that World Liberty Financial will be held to the same disclosure and transparency standards that apply to all crypto-related businesses in the United States.
Despite the former president’s high-profile involvement, Uyeda said the SEC would review the company to ensure it complies with applicable laws, warning that Trump’s legal team should prepare for regulatory hurdles.
Uyeda said:
“I would advise them to hire good lawyers, because they will have to navigate the same confusing and opaque process that every other entrepreneur in the industry has faced.”
Lack of clear direction
The SEC’s approach to regulating the cryptocurrency industry has been a source of frustration for many in the industry. Uyeda himself has criticized the commission’s apparent lack of clear guidance, leading to growing concerns that regulatory uncertainty could spur cryptocurrency innovation abroad.
However, Uyeda reiterated that the SEC’s role is to ensure proper disclosure rather than to determine the value of specific projects.
Hester Peirce, another SEC commissioner, recently echoed those concerns, calling the current regulatory environment “toxic” and warning that the lack of clarity could stifle innovation in the U.S. cryptocurrency market.
The push for more transparent regulation has gained traction among lawmakers, with some advocating for a joint advisory body to create a clearer framework for the booming industry. World Liberty Financial has faced skepticism from investors, who question its ability to gain traction in the face of regulatory challenges.
Trump has claimed the project would help position the United States as a leader in the global cryptocurrency market, but success may depend on whether regulators can offer clearer guidance in the near future.
