WLFI fell 8% over the past 24 hours after U.S. senators called for an investigation into the UAE’s involvement in World Liberty. The move followed renewed scrutiny of the company’s $500 million investment from the UAE and questions about possible national security risks tied to the deal.
Senators Elizabeth Warren and Andy Kim, both members of the Senate Banking Committee, asked Scott Bessent, who leads the Committee on Foreign Investment in the United States, to assess whether the UAE’s 49% investment in World Liberty presents security concerns. They also asked whether the transaction should face a full CFIUS review, pointing to the company’s access to sensitive information.
Data access concerns drive the review request
The push for a formal review centers on the possibility that the UAE or China could gain access to personal data collected by World Liberty. According to the report, the platform stores sensitive information, which has made foreign ownership a central issue in the debate over the company.
Those concerns have been amplified by G42, described as a key World Liberty partner. U.S. intelligence agencies have previously raised alarms over G42 because of its alleged ties to Chinese firms including Huawei. That backdrop has added weight to calls for a deeper examination of the investment structure.
Political pressure extends to the bank charter application
Pressure on World Liberty is not limited to the latest CFIUS request. Last week, Scott Bessent was questioned during a House Financial Services Committee hearing, where lawmakers urged him to delay the firm’s bank charter application. World Liberty has applied for a national trust bank charter through the Office of the Comptroller of the Currency, and that request has not been approved.
The combination of ownership scrutiny and licensing uncertainty has increased regulatory pressure around the company. WLFI’s decline shows that those issues are already feeding into token pricing.
Expansion plans continue with World Swap
Even with the backlash building, World Liberty is still moving ahead with expansion. The company recently said it plans to enter the forex market through a new platform called “World Swap.” Co-founder Zak Folkmann said more details about the initiative would be shared later this week at an event in Mar-a-Lago.
At the same time, USD1 has continued to grow. The report said its market capitalization recently moved past $5 billion. That leaves World Liberty balancing business expansion with intensifying political and regulatory attention.