Nikolas Sargeant
Democratic Senators Elizabeth Warren and Elissa Slotkin are demanding federal investigators examine potential ethics violations by Trump administration officials in cryptocurrency dealings with the United Arab Emirates. In a Sept. 23 letter, Senators Elizabeth Warren and Elissa Slotkin requested that the inspectors general of the Commerce and State Departments examine whether officials violated ethics rules in transactions that allegedly enriched President Trump's family and raised national security concerns among White House staff.
The investigation centers on interconnected deals involving World Liberty Financial, the Trump family's crypto venture, and the approval of artificial intelligence chip exports to the UAE. Witkoff retains a financial interest in World Liberty Financial—the Trump family crypto firm—while his son brokered the $2 billion UAE-backed deal tied to USD1. At the same time, Sacks continues to manage a venture fund backed by Emirati money that also invests in the infrastructure behind USD1. The senators specifically target White House AI and Crypto Czar David Sacks and U.S. Special Envoy Steve Witkoff in their ethics probe request.
The timing of these deals has raised red flags among lawmakers, particularly given the sensitive nature of the AI technology involved. The deals included approving the export of U.S. artificial intelligence (AI) chips to the UAE, a move Warren and Slotkin describe as involving "sensitive national security technology." Warren has previously characterized the Trump-backed USD1 stablecoin as a national security risk, arguing that the president is prioritizing personal financial gain over protective safeguards.
California Governor Gavin Newsom announced plans to launch a "Trump Corruption Coin" memecoin as part of his satirical "Campaign for Democracy" initiative, directly targeting Trump's cryptocurrency ventures. The Democratic governor aims to use proceeds from the token to fund redistricting efforts and voter outreach programs, while explicitly mocking Trump whom he called "one of the great grifters of our time." Newsom's broader satirical campaign includes mimicking Trump's social media style and selling MAGA-parody merchandise with messages like "NEWSOM WAS RIGHT ABOUT EVERYTHING!"
Warren's Ongoing Crypto Opposition
This latest ethics probe request represents a continuation of Senator Warren's broader opposition to cryptocurrency legislation under the Trump administration. At a recent Senate Banking Committee hearing, Warren unveiled a stringent regulatory framework for cryptocurrencies, directly challenging Republican efforts to advance industry-friendly legislation. Her framework focuses on five main priorities, including preventing public officials from profiting off crypto tokens.
Warren has been particularly vocal about the Trump family's cryptocurrency ventures, previously calling for a pause on the GENIUS Act stablecoin legislation due to potential conflicts of interest. She has criticized what she calls "shady crypto deals" involving the Trump family's World Liberty Financial stablecoin and its connections to a $2 billion arrangement with MGX, an Emirati investment firm.
The senator has also opposed the broader Republican approach to crypto regulation, which she characterizes as "another industry handout that gives the crypto lobby exactly its wish list". Warren has cited concerning fraud statistics, noting that Americans lost more than $9 billion to cryptocurrency fraud last year, a 66% increase from the year prior. Her comprehensive regulatory stance includes upholding securities laws, ensuring investor protections, and closing sanctions loopholes.
The senators' demands for investigation could impact pending cryptocurrency legislation in Congress. The US market structure bill faces an uncertain Senate path after Senators Elizabeth Warren and Elissa Slotkin demanded investigations into alleged conflicts involving Trump administration officials; their opposition could block a close vote and delay legislation to create a clear digital asset regulatory framework. The probe represents the latest escalation in ongoing tensions between Democratic lawmakers and the Trump administration's embrace of cryptocurrency ventures.
