News•May 8, 2026
Is $WLFI an Unregistered Security?
World Liberty Financial, linked to Donald Trump and adviser Steven Witkoff, issued the $WLFI governance token in October 2024. The token’s white‑paper, dubbed the “Gold Paper,” claims $WLFI is a pure voting instrument, not a security, but investors—including Justin Sun—allege the company retained unilateral control, froze tokens, and could reallocate holdings. Sun’s lawsuit and the SEC’s March 2026 token taxonomy, which applies the Howey test, raise the prospect that $WLFI constitutes an unregistered security. The case highlights the tension between DeFi governance claims and regulator scrutiny.
