Senator Elizabeth Warren is demanding an investigation into President Donald Trump’s family over a $2 billion foreign crypto deal.
Warren, the top Democrat on the Senate Banking Committee, and Senator Elissa Slotkin, a member of the Agriculture Committee, wrote to the State Department, Commerce Department, and Department of Ethics on Tuesday.
Their letter urged immediate probes into the activities of David Sacks, President Trump’s senior adviser on AI and crypto. It further sought scrutiny of Steve Witkoff, the White House’s special envoy to the Middle East.
According to Warren and Slotkin, both officials appear to have been directly involved in a multibillion-dollar cryptocurrency deal with foreign entities, raising serious concerns over conflicts of interest.
They argued that until Congress receives clear answers, no lawmaker should support new rules that could entrench the power of politically connected crypto players.
$2 Billion Deal Raises Alarms
The controversy stems from a September report in The New York Times about a $2 billion transaction between Abu Dhabi’s MGX and Binance. The deal, first announced in March, was settled in USD1, a stablecoin issued by Trump’s family-owned crypto venture, World Liberty Financial.
Warren and Slotkin stressed that this was not a simple investment but a complex arrangement involving senior U.S. officials. The senators cited allegations that Sacks and Witkoff played central roles in negotiating the deal.
The senators allege that Sacks and Witkoff supported policy changes that benefited the UAE’s access to advanced U.S. AI systems, despite national security concerns.
“This episode stands out as one of the clearest examples of public officials mixing government responsibilities with private business interests,” the senators wrote. “Such unbridled conflicts of interest have no place in the U.S. government.”
They also warned that politically driven crypto transactions with foreign governments could undermine American security interests.
“The possibility that national security decisions are being shaped by crypto-linked financial gain should alarm every American,” the letter added.
Warren’s Broader Push Against Industry-Influenced Legislation
In August, Warren stated that while she supports regulatory clarity for digital assets, she would reject any legislation “written by the crypto industry”. For her, the Trump family’s direct stake in stablecoin issuance makes the issue more urgent, not less.
Slotkin echoed this position, stressing that before lawmakers can consider market reforms, they must be certain that “crypto corruption does not undermine our national security.”
Crypto Bill Stalls in the Senate
The U.S. House of Representatives passed its version of a digital asset framework, the CLARITY Act, in July with bipartisan support. The measure advanced with 78 Democratic votes, showing that the party is not unified in its skepticism of crypto regulation.
The Senate version, however, has made little progress. The bill is backed by Senator Cynthia Lummis of Wyoming and other Republicans who view it as a way to promote U.S. competitiveness in digital finance. Lummis said in August she hoped the measure would move out of committee by the end of that month. No vote has been scheduled since.
In a media statement, a source familiar with Senate negotiations said that bipartisan talks are ongoing, but warned that passage may not occur until 2026. In the meantime, Warren’s intervention makes the path forward even more complicated.
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