Duke University Scholar: WLFI May Be Issuing Unregistered Securities

Lee Reiners, a lecturer at Duke University School of Law, stated that World Liberty Financial, which is associated with the Trump family, may have its governance token, WLFI, classified as an unregistered security.

He pointed out that although the project defines WLFI as a governance token, its issuance method, marketing, and the expectation of profits for investors could potentially meet the criteria of the “Howey Test” used by the U.S. SEC to determine securities.

Furthermore, the large-scale pre-sale of WLFI before the protocol was even launched, coupled with promotions leveraging the Trump brand, is also seen as strengthening its “investment characteristics.”