Nikolas Sargeant
Democratic lawmakers have requested Treasury Department financial records concerning former President Trump's digital asset projects, citing potential regulatory concerns and foreign influence questions surrounding his crypto expansion.
Democratic lawmakers have initiated a formal investigation into former President Donald Trump's expanding cryptocurrency ventures, requesting detailed financial intelligence reports from the U.S. Treasury Department. In a letter dated May 14, Representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin formally asked Treasury Secretary Scott Bessent to release all suspicious activity reports (SARs) filed since 2023 concerning several Trump-connected cryptocurrency entities.
The congressional inquiry specifically targets World Liberty Financial (WLF) and the Official Trump token (TRUMP), two cornerstone projects in the former president's recent digital asset strategy. Lawmakers established a May 30 deadline for the Treasury to provide the requested documentation, signaling the urgency behind their investigation.
Financial Intelligence Network Monitors for Potential Violations
The requested suspicious activity reports represent a critical tool in the government's financial crime prevention arsenal. These confidential documents are filed with the Financial Crimes Enforcement Network (FinCEN) when financial institutions detect potentially illicit activities such as money laundering, fraud, or other financial irregularities.
Beyond Trump's direct crypto ventures, lawmakers expanded their request to include SARs mentioning a broader ecosystem of related entities and individuals, including WinRed, America PAC, Elon Musk, political action committees generally, MELANIA, Justin Sun, and several other figures and organizations connected to Trump's business and political networks.
The lawmakers explicitly stated their legislative purpose: to assess whether new regulations are needed to prevent potential violations of campaign finance laws, securities regulations, anti-bribery statutes, and anti-corruption frameworks. "We must guard against financial misconduct connected to current or prospective federal officials," the letter emphasized.
A primary concern highlighted in the congressional request centers on World Liberty Financial's international investor base. Democrats noted that the token sale reportedly included offerings to overseas investors, potentially creating pathways for foreign influence through looser regulatory oversight compared to U.S.-based investments.
Further complicating matters is the involvement of controversial cryptocurrency entrepreneur Justin Sun, who invested in WLF and recently benefited from an SEC lawsuit pause. The Trump token itself faces additional scrutiny over anonymity concerns, as lawmakers pointed out that buyer identities remain undisclosed, potentially creating avenues for undeclared influence or favoritism through token purchases.
Legislative Efforts Expand to Limit Officials' Cryptocurrency Activities
This Treasury investigation represents the latest in a series of Democratic initiatives targeting Trump's deepening ties to the cryptocurrency sector. Earlier this month, senators urged the Department of Justice and Treasury to investigate connections between Trump and cryptocurrency exchange Binance.
On May 6, House Democrats launched parallel efforts by introducing two oversight bills and opening a subcommittee investigation examining whether Trump could personally profit from these digital ventures while campaigning for reelection.
Senate Democrats recently escalated these efforts by introducing comprehensive legislation designed to prevent federal officials and their families from engaging in cryptocurrency ventures. The proposed Modern Emoluments and Malfeasance Enforcement (MEME) Act, unveiled on May 6 by Senator Chris Murphy, would prohibit the president, vice president, members of Congress, senior executive officials, and their immediate family members from issuing, sponsoring, or promoting digital assets, including securities, commodities, and futures.
This legislative push directly targets Trump's recent cryptocurrency activities amid growing public attention to the former president's involvement with meme coins and other digital asset projects during his reelection campaign.
