House Democrats Urge Treasury to Investigate Trump Family’s Cryptocurrency Venture Over Conflict and Security Concerns
Washington, D.C. — On Thursday, a coalition of House Democrats formally requested a probe by the U.S. Treasury Department into World Liberty Financial, the cryptocurrency company affiliated with former President Donald Trump’s family. The lawmakers expressed concerns including potential conflicts of interest and national security risks linked to the firm’s operations and ownership ties.
The letter was spearheaded by Representative Gregory Meeks (D-N.Y.) along with 40 other Democratic members of Congress. It follows recent testimony from Treasury Secretary Scott Bessent before the House Financial Services Committee, a hearing marked by contentious exchanges. At that session, Rep. Meeks criticized Secretary Bessent for appearing to defer excessively to President Trump, especially regarding a significant $500 million investment into World Liberty Financial by Sheikh Tahnoon bin Zayed Al Nahyan, a royal from the United Arab Emirates, who has been controversially nicknamed the “spy sheikh.”
“This $500 million deal connecting the Trump family with an Emirati royal is not just a question of financial stability; it carries serious implications for national security,” Meeks said in a statement accompanying the letter. “The American people deserve transparency, and we will hold Secretary Bessent accountable for his answers, not for political allegiances.”
World Liberty Financial is currently pursuing a national bank charter. Such charters are reviewed and granted by the Office of the Comptroller of the Currency (OCC), an independent bureau within the Treasury Department responsible for regulating banks. The lawmakers’ letter emphasizes concerns around whether this process has been encumbered by conflicts of interest or foreign influence, particularly given Sheikh Tahnoon’s substantial investment and the Trump family’s leadership role in the company.
Last Wednesday, World Liberty Financial conducted a forum at Mar-a-Lago where Donald Trump Jr. and Eric Trump promoted their family’s stablecoin as an innovative financial product, simultaneously disparaging traditional banking systems as akin to a “Ponzi scheme.”
During the Financial Services Committee hearing, Rep. Meeks pressed Secretary Bessent to pause any pending applications tied to World Liberty Financial and to launch an investigation into the potential foreign influence within the bank-chartering process. Bessent responded that the OCC operates independently but did not elaborate further on the inquiry amid the heated session.
The Trump family, along with real estate investor Steve Witkoff who serves as a special envoy, are co-founders emeritus of the company, while operational management includes members from both families. The Democrats highlighted that the issue now expands beyond mere regulatory debates over cryptocurrency to fundamental questions of foreign ownership, national security, and institutional integrity in U.S. financial oversight.
In their letter, the lawmakers requested detailed information on safeguards designed to prevent foreign government entities, proxies, or politically connected investors from exploiting the bank-chartering process to wield undue influence over the American financial system or access sensitive technological infrastructure. Additionally, they sought clarity on what role, if any, the White House, Office of Management and Budget, and Treasury Department play in influencing OCC decisions on national bank charters.
The Democratic group requested a formal response from the Treasury by February 26. A spokesperson for the Treasury Department had not responded to requests for comment as of publication.
“Our banking regulatory institutions must maintain their credibility through transparency, independence, and resilience to political or geopolitical pressures,” the lawmakers asserted. “Our constituents must trust that the banking system is governed by law and prudential judgment, not by proximity to power or political convenience.”
As the scrutiny intensifies, questions remain about how the intersection of politics, foreign investment, and emerging financial technologies will shape regulatory decisions impacting World Liberty Financial and broader U.S. financial security. The evolving inquiry underscores the ongoing tensions in Washington over governance, transparency, and accountability in cryptocurrency ventures tied to high-profile political figures.
For further updates on this developing story and other financial regulatory matters, stay tuned to CNBC.