Senate Puts $2-B Crypto Deal Under Microscope: Warren Demands Trump Family Investigation

Washington turns its glare onto blockchain billions as political tensions collide with cryptocurrency markets.

The Regulatory Spotlight

Senator Elizabeth Warren launches fresh offensive against former President's family, demanding full-scale probe into alleged $2 billion digital asset dealings. The move sends shockwaves through political and crypto circles simultaneously.

Following the Money Trail

Federal investigators now trace cryptocurrency transactions across multiple blockchain networks. Subpoenas hit major exchanges as lawmakers seek transparency in political-linked crypto movements.

Market Impact Assessment

While Bitcoin holds steady, regulatory uncertainty creates volatility in altcoin markets. Traders watch Washington developments more closely than technical charts—because when politicians start caring about 'blockchain transparency,' you know there's election season math involved.

This high-stakes collision between politics and digital assets proves crypto's inevitable march into mainstream finance—regardless of which old-guard institutions try to gatekeep the future.

Senators Call For Investigation

The senators say Sacks, who advises on AI and crypto, and Witkoff, a special envoy to the Middle East, were involved in a complex deal that connected Abu Dhabi’s MGX, Binance, and a stablecoin called USD1.

Reports indicate the deal was first announced in March and was detailed again in a September New York Times piece. According to the senators, the arrangement was not a simple investment but part of a set of actions that could have opened doors for foreign access to US AI systems.

Details Of The Transaction

At the center is USD1, a token issued by World Liberty Financial, a company tied to the president’s family. Based on reports, MGX moved money in a transaction valued at $2 billion that involved Binance and the USD1 token as part of the settlement.

Lawmakers want to know who negotiated which terms, and whether any official acts or policy pushes were influenced by private gain tied to that token.

Warren and Slotkin argue the case raises serious national security questions. They wrote that certain officials appear to have pushed for policy changes that WOULD make advanced US AI technology more accessible to the UAE.

The senators warned that “no place in the US government” should be found for mixing official duties with private business interests. They also said that until answers arrive, Congress should be wary of any rules that could benefit politically connected crypto players.

Senator Warren has said she supports clearer rules for digital assets but will oppose measures “written by the crypto industry.”

Slotkin echoed that view, urging clarity before moving on market reforms and stressing that lawmakers must be sure crypto money is not shaping national security choices.

The House passed its version of a digital asset bill, the CLARITY Act, which drew 78 Democratic votes. Yet the Senate measure, championed by Senator Cynthia Lummis, has stalled and faces a slow path forward.

Featured image from Getty Images, chart from TradingView