Why did the price of WLFI fall?

World Liberty Financial (WLFI) dropped 1.91% in the past 24 hours, performing worse than the overall crypto market, which fell by 1.5%. Despite this, WLFI has gained 24.63% over the last 30 days. The recent decline is mainly due to growing political and regulatory concerns. Key factors include:

1. Political Scrutiny – Some Democratic lawmakers have accused the SEC of favoritism involving WLFI, putting pressure on regulators.
2. Trading Volume Drop – WLFI’s trading volume fell sharply by 51.4% to $73.8 million, showing less market activity.
3. Market Sentiment – Overall crypto sentiment is neutral, with Bitcoin holding a dominant 59.06% market share.

In-Depth Look

1. Political Scrutiny (Negative Impact)

Summary: On January 15, 2026, three Democratic members of the House—Maxine Waters, Sean Casten, and Brad Sherman—sent a letter to SEC Chair Paul Atkins. They accused the SEC of a "pay-to-play" scheme related to WLFI. This claim is based on Justin Sun’s $75 million investment in WLFI after his SEC case was paused, suggesting possible political influence on regulatory decisions.
Why it matters: These allegations increase uncertainty around WLFI’s regulatory future, especially since the company has connections to the Trump family. Increased scrutiny could discourage big investors and lead to tougher regulations, possibly delaying WLFI’s efforts to get a banking license (source).
What to watch: How the SEC responds and whether new investigations into WLFI’s compliance emerge.

2. Trading Volume Decline (Negative Impact)

Summary: WLFI’s 24-hour trading volume dropped by 51.41% to $73.8 million. The turnover ratio (trading volume divided by market cap) also fell to 0.0165, indicating less liquidity.
Why it matters: Lower trading volume means less price stability and suggests that traders are losing interest in the short term. This drop happened alongside the political news, showing that investors may be cautious ahead of regulatory decisions.
What to watch: If trading volume stays below $70 million, it could signal further price declines.

Conclusion

WLFI’s recent price drop reflects growing regulatory concerns and weakening market momentum, even though it has gained over the past month. The most important factor to monitor is the SEC’s reaction to the "pay-to-play" allegations within the next 48 hours. If a formal investigation is launched, it could lead to increased selling pressure.

What could affect the price of WLFI?

The future price of World Liberty Financial (WLFI) depends on regulatory approvals, how widely its products are adopted, and political developments.

1. Bank Charter Decision (Mixed Impact) – Getting approval could legitimize the USD1 stablecoin but also bring increased scrutiny.
2. Real-World Asset (RWA) Product Launch (Positive Outlook) – Introducing tokenized commodities could boost WLFI’s usefulness starting January 2026.
3. Political Risks (Negative Outlook) – Connections to former President Trump increase attention but also raise legal and controversy risks.

In-Depth Analysis

1. Regulatory Milestones & Bank Charter (Mixed Impact)

Overview:
WLFI has applied for a national trust bank charter, expected by January 7, 2026. This would allow WLFI to regulate its USD1 stablecoin at the federal level, handling custody, issuance, and dollar conversions all in one place. However, Senator Elizabeth Warren opposes this move, citing conflicts of interest due to WLFI’s ties to the Trump family (Yahoo Finance).

What this means:
If approved, this could encourage institutional investors to adopt USD1, which already has a supply of $3.4 billion, and increase WLFI’s role in governance. If the application is rejected or delayed, it could slow down growth and cause investors to sell off their holdings.

2. Real-World Asset Expansion (Positive Outlook)

Overview:
WLFI plans to launch tokenized commodities like oil and timber, paired with USD1, starting in January 2026. Partnerships such as Zebec’s payroll integration and a remittance pilot program in Pakistan aim to expand USD1’s practical uses (Bitcoinist).

What this means:
Adopting real-world assets (RWA) could strengthen WLFI’s position as a governance platform and increase demand for the token. Similar projects, like Ondo Finance, have captured over half of the RWA market, indicating strong potential if WLFI executes well.

3. Political Sentiment & Legal Risks (Negative Outlook)

Overview:
WLFI’s association with Trump has increased retail investor interest but also attracted regulatory scrutiny. While some SEC cases were dismissed during Trump’s administration, Democrats have accused the SEC of favoritism involving WLFI backers like Justin Sun (CryptoNews).

What this means:
Political changes, such as the 2026 midterm elections, could lead to stricter regulations. Legal challenges or negative news could cause price swings, especially since 15.75% of WLFI is held by Trump-linked groups.

Conclusion

WLFI’s price outlook carries both opportunities and risks. Approval of the bank charter and successful RWA adoption could drive growth, but political controversies and execution challenges pose threats. Keep an eye on the Office of the Comptroller of the Currency’s (OCC) decision expected by mid-2026 and whether USD1’s supply grows beyond $5 billion. The key question: Can WLFI successfully navigate regulatory hurdles while maintaining decentralized governance, or will political issues limit its potential?

What are people saying about WLFI?

Conversations around World Liberty Financial (WLFI) are buzzing with excitement and caution. Here’s the quick take:

1. Applying for a banking license is raising hopes among institutions.
2. Some predict WLFI’s price could hit $5 by May as real-world asset (RWA) projects launch.
3. The new World Liberty Markets platform is expanding WLFI’s use in decentralized finance (DeFi).
4. Political concerns, especially from Democrats about ties to Trump, could bring regulatory challenges.

Deep Dive

1. Banking License Application Seen as Positive

@thekelvinonly shared:
"January 2026 is heating up! World Liberty Financial is rolling out its Real-World Asset (RWA) suite... $WLFI holders, this could be the catalyst!"
View original post
What this means: This is good news for WLFI. Tokenizing real-world assets means WLFI can be used for more practical purposes, which might attract big investors and increase demand for its stablecoin (USD1) and governance token.

2. Price Predictions Are Optimistic

@KekiusElonus predicts:
"🔥 $WLFI PRICE TARGETS: END OF JANUARY: $1, MARCH: $2, APRIL: $3.50, END OF MAY: $5"
View original post
What this means: These price targets show strong confidence in WLFI’s growth, but they depend on successful rollout of RWA projects and getting the banking license approved.

3. Launch of World Liberty Markets Boosts Utility

According to CoinMarketCap:
"WLFI launches DeFi lending platform using USD1, allowing ETH/USDC collateralization with governance token voting power."
View article
What this means: This new platform lets users borrow and lend using WLFI’s stablecoin, creating real earning opportunities. This increases the use and value of WLFI tokens.

4. Political Concerns Could Impact WLFI

Reported by CryptoNews:
"Democrats allege SEC 'pay-to-play' in Justin Sun case after his $75M WLFI investment, citing conflicts with Trump ties."
View article
What this means: Political scrutiny may slow down regulatory approvals and scare off institutional investors, posing a risk to WLFI’s growth.

Conclusion

The outlook for WLFI is mixed. On one hand, new projects and banking license efforts suggest strong growth potential. On the other, political and regulatory challenges could create obstacles. Keep an eye on the banking license decision—it will be a key factor in WLFI’s future success.

What is the latest news about WLFI?

World Liberty Financial (WLFI) is making progress despite regulatory challenges and political debates as it grows its ecosystem. Here are the key updates:

1. New Custody Subsidiary Launched (January 16, 2026) – WLFI is creating a regulated crypto custody company to attract institutional clients.
2. SEC Case Dismissals Under Question (January 15, 2026) – Some Democrats claim political influence affected dropped crypto enforcement cases.
3. Partnership with Pakistan for USD1 Stablecoin (January 15, 2026) – WLFI explores using its stablecoin for international money transfers amid U.S. regulatory concerns.

In-Depth Look

1. New Custody Subsidiary Launched (January 16, 2026)

What happened:
World Liberty Financial announced it is setting up World Liberty Trust, a new company focused on securely holding crypto assets for clients. This subsidiary is awaiting regulatory approval. This move follows WLFI’s 2023 application for a U.S. banking license and aims to serve institutional investors by managing their crypto assets safely. The company’s CEO, Zach Witkoff, who has ties to the Trump administration, will lead the board.

Why it matters:
This is a positive sign for WLFI because it shows regulators may be gaining confidence in the company. It also opens new ways for WLFI to earn revenue by offering custody and fund management services. If approved, it could prove that combining decentralized finance (DeFi) with traditional finance (TradFi) works well, though some remain cautious due to political connections. (Bloomberg via CoinMarketCap)

2. SEC Case Dismissals Under Question (January 15, 2026)

What happened:
Some Democratic lawmakers have accused the U.S. Securities and Exchange Commission (SEC) of dropping enforcement cases against major crypto companies like Coinbase, Binance, and Kraken after these firms donated about $95 million to former President Trump’s campaign. They also pointed to Justin Sun’s $75 million investment in WLFI and his role as a Trump advisor as potential conflicts of interest.

Why it matters:
This news is mixed for WLFI. On one hand, fewer regulatory actions could be good for the company. On the other hand, political ties might lead to increased scrutiny or backlash if investigations continue. The SEC’s independence and fairness remain under close watch. (Crypto.News, Yahoo Finance)

3. Partnership with Pakistan for USD1 Stablecoin (January 15, 2026)

What happened:
WLFI’s affiliate, SC Financial Technologies, signed a memorandum of understanding (MoU) with Pakistan to use WLFI’s USD1 stablecoin for cross-border payments. This aligns with Pakistan’s plans to develop a central bank digital currency (CBDC). However, U.S. Senator Elizabeth Warren criticized the deal, citing possible conflicts of interest.

Why it matters:
This partnership is a positive step for WLFI’s stablecoin, USD1, helping it gain real-world use in international money transfers. Still, regulatory challenges in the U.S. could slow down progress. (Bitcoinist)

Conclusion

World Liberty Financial is moving forward with new services for institutions and expanding its stablecoin’s global reach. However, political connections may create regulatory hurdles. The big question remains: will the SEC’s focus on crypto ventures linked to Trump overshadow WLFI’s efforts to become a regulated banking player?

What is expected in the development of WLFI?

World Liberty Financial (WLFI) is focused on growing the usefulness and adoption of its USD1 stablecoin through several key projects.

1. RWA Product Suite (January 2026) – Launching tokenized real-world assets like oil and gas, backed by USD1.
2. Debit Card Pilot (Q1 2026) – Introducing a debit card to let users spend USD1 and other cryptocurrencies in everyday purchases.
3. USD1 Expansion to Aptos (2026) – Bringing USD1 to the Aptos blockchain to improve cross-chain use and accessibility.
4. Bank Charter Approval (Ongoing) – Applying for a U.S. banking license to offer more official financial services with USD1.

Deep Dive

1. RWA Product Suite (January 2026)

Overview: WLFI is launching a new product that turns real-world commodities—such as oil, gas, timber, and cotton—into digital tokens backed by USD1. This “real-world asset” (RWA) platform aims to connect traditional finance with blockchain technology, using USD1 for transactions and settlements. The rollout started in January 2026, as reported by Cryptobriefing.

What this means: This move is positive for WLFI because it expands how USD1 can be used beyond just payments, potentially attracting large institutional investors. However, there are risks since regulators are still figuring out how to oversee tokenized commodities.

2. Debit Card Pilot (Q1 2026)

Overview: WLFI announced at Token 2049 that it will launch a debit card allowing users to spend USD1 and other cryptocurrencies in daily life. The card will work with a mobile app and integrate with existing payment systems. The pilot program is planned for the first quarter of 2026, according to Bitcoinist.

What this means: This is a positive development because making USD1 easy to spend could help it reach a wider audience. On the downside, delays in partnering with merchants or regulatory challenges with card providers could slow adoption.

3. USD1 Expansion to Aptos (2026)

Overview: WLFI plans to launch USD1 on the Aptos blockchain to improve liquidity and allow USD1 to be used across different blockchain networks. Aptos is known for its fast transaction speeds. No exact date has been set beyond sometime in 2026.

What this means: This expansion is promising because it could help USD1 compete with other stablecoins like USDT by making it more accessible. However, technical challenges or low user adoption of Aptos could limit success.

4. Bank Charter Approval (Ongoing)

Overview: On January 7, 2026, WLFI applied for a U.S. national trust bank charter. This license would allow WLFI to officially issue USD1, offer custody services, and handle currency conversions. The approval process could take months or years and faces political scrutiny, including opposition from Senator Warren (source).

What this means: This is a neutral factor for now. Approval would give USD1 more legitimacy and trust in the financial system, but rejection or delays could slow institutional adoption. The regulatory timeline remains uncertain.

Conclusion

WLFI’s roadmap focuses on making USD1 more useful in the real world through tokenized assets, payment options, and regulatory progress. These steps aim to position USD1 as a bridge between traditional finance and decentralized finance (DeFi). However, regulatory challenges will be a key factor in whether these plans succeed. It will be important to watch how changing U.S. crypto regulations affect WLFI’s efforts to secure a banking license.

What updates are there in the WLFI code base?

I wasn’t able to find useful information to answer this question right now. The CoinMarketCap team is continuously updating my crypto knowledge, so if any important details become available, I should have them soon. In the meantime, please feel free to choose another question or cryptocurrency for analysis.