In an interview with Fox Business reporter Eleanor Terrett, SEC commissioner Mark Uyeda said, “Godspeed,” meaning ‘good luck,’ referring to the Trump family’s DeFi venture, World Liberty Financial.
Amid contentious US regulations, majorly enforced by the Securities and Exchange Commission (SEC), there are fears that they could send innovation overseas.
Trump Family’s DeFi Venture Should Brace For Tough SEC Regulations
Donald Trump’s DeFi project, World Liberty Financial, will face the same regulatory framework that other crypto-related firms. This was confirmed by SEC Commissioner Mark Uyeda, an attorney and government official who has served in this role since June 30, 2022. A Republican and crypto advocate, Uyeda supports tokenization and has voiced strong views on the topic.
Uyeda acknowledged that the SEC’s actions against crypto have created the impression that the agency is politicized. However, he highlighted that the SEC focuses on regulating disclosure, not determining the merit of projects. As a result, the agency will require World Liberty Financial to meet the same transparency standards as any other firm, regardless of its unique characteristics or affiliations.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
With this, Uyeda urges former US president Donald Trump, like any other crypto entrepreneur in the US, to build its legal muscle. This suggests the regulator will clamp down on the DeFi venture whenever it has probable cause. Acts and circumstances that contravene regulations based on reasonably trustworthy information will draw scrutiny.
“I would tell them to hire good lawyers because they will have to navigate the same confusing and opaque process that every other entrepreneur in the space has faced because the Commission has not offered clear guidance. Godspeed to them,” Terrett reported, citing Uyeda.
Indeed, regulations in the US remain broadly uncertain, with instances where regulatory bodies collide over opinion. This has lawmakers pushing for a joint advisory body.
Speaking to Luke Mulk of The Brave Technologist, SEC commissioner Hester Peirce acknowledged the current “toxic” state of the US regulatory environment. She said crypto markets could register more innovation with better regulatory clarity.
“The SEC doesn’t give guidance or disclose. Hire good lawyers because only the law will do the job the SEC should be doing. The assault on crypto is too apparent. This comment alone gives reason to remove these useless SEC government employees and put in more savvy ones,” one community member said.
Read more: How To Fund Innovation: A Guide to Web3 Grants
Meanwhile, crypto investors remain skeptical of the World Liberty Financial DeFi venture. The project faces multiple challenges to gain traction and meet its objectives. Donald Trump claims it will position America as the world’s crypto capital, but this depends on retaining crypto innovation within the US and preventing it from moving overseas.
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