Lawmakers call for investigation into White House officials before supporting digital asset legislation
The path toward a long-awaited crypto market structure bill in the U.S. Senate has hit resistance, with Democratic lawmakers raising concerns over alleged conflicts of interest tied to foreign crypto deals.
According to a Tuesday letter, Senators Elizabeth Warren and Elissa Slotkin urged federal authorities to investigate White House officials David Sacks, President Trump’s AI and crypto czar, and Steve Witkoff, his Special Envoy to the Middle East. The lawmakers suggested that without such an inquiry, they could not support the pending legislation.
Allegations tied to $2B crypto deal
The senators cited a $2 billion investment deal between Abu Dhabi-based MGX and cryptocurrency exchange Binance, settled in USD1 stablecoin issued by Trump’s family-linked World Liberty Financial. Reports indicated that U.S. officials facilitated the agreement by offering access to advanced AI chips.
“In the history of our country’s foreign policy, one is hard-pressed to find two senior officials with such significant conflicts of interest involved in decisions regarding national security,” Warren and Slotkin wrote. “Such unbridled conflicts of interest have no place in the U.S. government.”
They added that this information is critical as Congress debates how to regulate digital assets and ensure “crypto corruption does not undermine our national security.”
Tight Senate vote expected
The Senate Banking and Agriculture Committees are expected to take up the bill soon, but the vote margin is expected to be narrow. Warren, the ranking member on Banking, and Slotkin, a member of Agriculture, could play pivotal roles in shaping Democratic support.
While Warren has previously supported stronger regulation of digital assets, she warned in August that she would not back legislation “written by the crypto industry.”
A group of 12 Democrats recently signaled willingness to work with Republicans, provided safeguards against corruption and abuse are included.
For now, the bill’s future remains uncertain, as concerns over foreign influence and internal conflicts delay momentum for comprehensive U.S. crypto regulation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.