Duke University Scholar: WLFI May Constitute Unregistered Securities

Lee Reiners, a lecturer at Duke University School of Law, stated that World Liberty Financial, associated with the Trump family, has its governance token WLFI potentially constituting an unregistered security.

He pointed out that although the project defines WLFI as a governance token, based on its issuance method, marketing, and investors' expectation of profit, it may meet the criteria of the SEC's "Howey Test" for determining a security.

Furthermore, WLFI conducted a large-scale pre-sale before the protocol went live and leveraged the Trump brand for promotion, which is also seen as reinforcing its "investment characteristics."