TheBlock
Lee Reiners, a lecturing fellow at Duke University and former Federal Reserve Bank of New York examiner, argues in a new blog post that World Liberty Financial's WLFI token meets the SEC's own criteria for an unregistered security — despite the project's insistence that it is a pure governance token. Reiners applies the Howey Test directly: WLFI was sold before the underlying protocol was built, leveraged the Trump family brand, and raised capital from buyers who had a reasonable expectation of profit.
"WLFI is not a decentralized commodity. It is a Trump-branded governance token sold to finance a centrally controlled crypto business. If the SEC's interpretation means anything, it should apply here," Reiners wrote. He also flagged a $75 million stablecoin borrowing arrangement with Dolomite — whose co-founder advises World Liberty — as evidence of self-dealing that undermines any…
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