WLFI falls 8% amid CFIUS review risk over UAE stake
- Lyla Velez
- February 16, 2026
- News
- 0 Comments
Key Points:
- WLFI token dropped 8% after senators sought CFIUS review of UAE stake.
- Lawmakers flagged national-security and governance risks from foreign ownership in WLFI.
- Preliminary request only, not confirmation of a formal CFIUS investigation.
World Liberty Financial’s WLFI token fell about 8% after senators urged Treasury Secretary Scott Bessent to assess whether a reported United Arab Emirates–backed 49% stake should go to the Committee on Foreign Investment in the United States (CFIUS), as reported by Cointelegraph. The call centers on potential national‑security and governance risks tied to foreign ownership in a U.S.-linked fintech and stablecoin ecosystem.
Markets appeared to connect the drawdown to the policy risk signal from the Senate request, according to Coingape. At this stage, the development is a call for a CFIUS review rather than confirmation that a formal investigation has begun.
Why the reported UAE 49% stake matters
A 49% stake, while technically short of outright control, can still confer influence through governance rights, board participation, or information access, depending on deal terms. For a platform associated with payments, remittances, and a stablecoin ecosystem, that perceived influence is central to why regulators and markets might reassess risk.
Lawmakers have also widened oversight beyond the Senate letter. According to Yahoo News, Rep. Ro Khanna sought records related to WLFI’s ownership, payment flows, board appointments, due diligence, and the role of the USD1 stablecoin in other transactions.
Watchdogs have questioned the strategic intent behind UAE-linked funding and the potential for influence channels. Tony Carrk, executive director at Accountable.US, said: “Congress should question what this fly-by-night United Arab Emirates fund … wants in return for its $100 million tribute to a Trump family crypto venture. … The potential for these foreign bribe-like investments … is too great to ignore. Guardrails are desperately needed.”
WLFI and figures aligned with the project have rejected the premise that foreign investment confers control. In public comments, President Trump has said he has no direct role in the UAE deal, stating, “my sons… are handling that , my family is handling it.”
Data and privacy: what WLFI collects and critics’ concerns
According to a public request by Senators Elizabeth Warren and Andy Kim, critics worry WLFI collects personal information such as wallet addresses, IP addresses, device identifiers, and approximate location, and that a foreign investor could gain access through governance or information‑sharing channels. Those concerns reflect broader national‑security focus areas around data access in fintech.
WLFI has rejected allegations that foreign stakeholders can access user data and has emphasized U.S. compliance and transparency, including claims that its USD1 stablecoin is fully reserved, as reported by FinanceTimes.org. The company’s position is that investment does not alter its privacy policies or confer control over sensitive systems.
At the time of this writing, WLFI traded near $0.10 with a market capitalization around $2.71 billion and 24‑hour volume near $150 million, based on data from CoinMarketCap. These figures provide context alongside the policy headlines but do not indicate future performance.
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