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Senator Elizabeth Warren has urged the Treasury Department and the Federal Reserve not to use taxpayer funds to support the crypto industry, warning it could “directly enrich President Trump and his family’s cryptocurrency company, World Liberty Financial” — as the project’s USD1 stablecoin surged 50% in a month to exceed $5 billion in circulation.
The debate escalated in mid-February after USD1 backed by US Treasuries and other securities surged 50% in a month to exceed $5 billion in circulation, making it the fifth-largest stablecoin, according to DefiLlama. While Binance says its role is limited, the broader Binance WLFI airdrop narrative is unfolding against a backdrop of political tension, regulatory pressure, and lingering questions about former CEO Changpeng Zhao.
At the center of the controversy surrounding the Binance WLFI airdrop discussion is USD1, a stablecoin tied to World Liberty Financial. Over the past month, USD1’s circulating supply climbed rapidly, reflecting strong market demand during a volatile period for digital assets.
Binance has sought to clarify its position. “Our involvement with World Liberty Financial–related products, including USD1, is limited to standard listing, infrastructure, and market-access services that we provide to a wide range of projects on consistent terms,” — Jessica Jung, Member of Binance’s Global PR Team, in comments to DL News earlier in February.
The exchange’s statement underscores that its engagement with WLFI-related offerings including those linked to the broader Binance WLFI airdrop ecosystem does not extend beyond its usual commercial services. However, given Binance’s global footprint and influence, even standard listing support carries weight in the market.
World Liberty Financial has positioned itself as a key player in the intersection of politics and crypto finance. The firm recently hosted the World Liberty Forum at Mar-a-Lago on February 18, drawing executives from major financial and crypto institutions. Among the speakers were the CEOs of Coinbase, BitGo, Franklin Templeton, and Goldman Sachs, alongside public figures including FIFA President Gianni Infantino and investor Kevin O’Leary.
Notably absent was Binance co-founder and former CEO Changpeng Zhao.
The Binance WLFI airdrop conversation gained fresh urgency as US lawmakers intensified scrutiny of World Liberty Financial’s ownership structure and funding sources.
Earlier this month, Senator Elizabeth Warren and other lawmakers sent a formal letter to Treasury Secretary Scott Bessent calling for an investigation into World Liberty Financial on national security grounds. The letter referenced a reported $500 million equity stake linked to a United Arab Emirates firm, citing a Wall Street Journal report that said the deal was signed four days before Donald Trump’s inauguration and involved the purchase of a 49% stake in WLFI.
On February 19, Warren escalated her concerns in a separate letter to the Treasury Department and the Federal Reserve, urging officials not to use taxpayer funds to “bailout” the crypto industry.
“Not only would it be deeply unpopular to transfer wealth from American taxpayers to cryptocurrency billionaires, it could also directly enrich President Trump and his family’s cryptocurrency company, World Liberty Financial,” — Elizabeth Warren, U.S. Senator, in a letter dated February 19.
Her remarks have intensified debate around projects tied to WLFI, including those circulating within the broader Binance WLFI airdrop ecosystem. Critics argue that any perception of preferential treatment or indirect public support could undermine trust in both regulators and crypto markets.
The White House has pushed back firmly against allegations of impropriety.
“The president has no involvement in business deals that would implicate his constitutional responsibilities,” — David Warrington, White House Counsel, in comments to DL News last week.
As scrutiny grows, the Binance WLFI airdrop issue has become intertwined with broader questions about political influence, regulatory oversight, and the role of major exchanges in supporting emerging token projects.
Changpeng Zhao, one of crypto’s most prominent figures, continues to influence how people view Binance. In 2023, he pleaded guilty to violating U.S. law for failing to implement a proper anti–money laundering program while serving as CEO.
He served four months in jail in 2024 and was later pardoned in October by Donald Trump, a decision that sparked widespread attention in political and financial circles.
Zhao has dismissed claims that the pardon was linked to Binance’s partnership with World Liberty Financial or developments surrounding the Binance WLFI airdrop.
When Warren’s February letter became public, Zhao responded succinctly on X: “Crypto never needed a bailout, never will.”
His comment resonated with supporters who argue that digital assets should operate independently of government intervention. At the same time, critics contend that the rapid growth of politically connected crypto ventures including those feeding into the Binance WLFI airdrop discussion raises legitimate governance concerns.
Despite the political crosscurrents, the broader crypto market has shown resilience. Bitcoin rose 2.0% over the past 24 hours to trade at $68,181, while Ethereum edged up 0.1% to $1,967.
Still, the Binance WLFI airdrop controversy unfolds during a period of heightened volatility, with the industry reeling from a crash that wiped out an estimated $2 trillion in investor holdings. Lawmakers’ calls for tighter oversight come as regulators weigh how to balance innovation with systemic risk.
For Binance, maintaining distance while continuing routine infrastructure services may prove delicate. For World Liberty Financial, rapid growth in USD1 issuance brings both validation and scrutiny. And for policymakers, the intersection of crypto finance and political influence now exemplified by the Binance WLFI airdrop debate presents a complex regulatory challenge.
