Thomas Daniels
A coalition of Democratic senators has formally requested the U.S. Department of Justice (DOJ) and the Treasury Department to investigate potential conflicts of interest stemming from President Donald Trump’s cryptocurrency ventures, particularly those involving Binance, a leading global crypto exchange. This inquiry follows the Senate’s failure to advance the GENIUS Act, a bill aimed at regulating stablecoins.
In a letter dated May 9, Senators Elizabeth Warren, Chris Van Hollen, Richard Blumenthal, and Sheldon Whitehouse expressed concerns over a $2 billion investment by Abu Dhabi-based firm MGX into Binance, facilitated through USD1—a stablecoin issued by World Liberty Financial, a company closely associated with the Trump family. The senators emphasized the need for transparency regarding Binance’s compliance with its 2023 plea agreement, which included a $4 billion settlement and the resignation of CEO Changpeng Zhao.
The senators stated, “Our concerns about Binance’s compliance obligations are even more pressing given recent reports that the company is using the Trump family’s stablecoin to partner with foreign investment companies.” They urged Attorney General Pam Bondi and Treasury Secretary Scott Bessent to provide detailed accounts of Binance’s adherence to the settlement terms, especially in light of the Trump family’s deepening involvement in the cryptocurrency sector.
This development coincides with the Senate’s rejection of the GENIUS Act, which failed to secure the necessary 60 votes to proceed. The bill, initially receiving bipartisan support, faced opposition due to concerns over potential loopholes that could allow public officials to benefit financially from crypto ventures. Notably, President Trump’s launch of the $TRUMP memecoin and the Trump family’s significant stake in World Liberty Financial have raised ethical questions. Reports indicate that the president’s crypto holdings now constitute nearly 40% of his net worth, amounting to approximately $2.9 billion.
In response to these concerns, Senate Democrats have introduced the End Crypto Corruption Act, aiming to prohibit federal officials and their families from investing in or endorsing digital assets. The legislative push reflects growing apprehension over the intertwining of political influence and personal financial gain in the rapidly evolving crypto industry.
