Senate Democrats Demand Clarity on Trump’s World Liberty Crypto Deal Ahead of Critical Vote
By Madeleine May and Hannah Marr
June 11, 2025 / 2:07 PM EDT / CBS News
As the Senate prepares for a pivotal vote on the GENIUS Act, a coalition of Senate Democrats is intensifying their scrutiny of a multibillion-dollar crypto investment deal involving President Donald Trump’s family. Recent correspondence has revealed concerns about potential conflicts of interest arising from Trump’s association with World Liberty Financial, a cryptocurrency firm partly owned by his family.
Escalating Concerns Over Crypto Ventures
In a series of letters exchanged between Senate Democrats and executives at World Liberty Financial, senators have expressed apprehension regarding the firm’s dealings, particularly in relation to a newly launched stablecoin that could financially benefit Trump. Senators Elizabeth Warren of Massachusetts and Jeff Merkley of Oregon outlined their concerns in a June 10 letter, noting, "The launch of a stablecoin directly tied to a sitting President who stands to benefit financially from the stablecoin’s success is an unprecedented conflict of interest presenting significant threats to both our financial system and our democracy."
The stablecoin in question is called "USD1," which is designed to be backed directly by U.S. Treasuries and cash equivalents. The scrutiny comes on the heels of a substantial investment, reported to be $2 billion, from the Emirati firm MGX into World Liberty Financial, which has connections to Binance, one of the largest cryptocurrency exchanges globally.
Request for Financial Transparency
In their letters, Warren and Merkley have demanded detailed financial records regarding the investment and the roles played by Binance and MGX in the deal. Specifically, they have requested the preservation of communications between Binance officials, MGX, World Liberty Financial, and various members of the Trump family, including his sons, Eric and Donald Jr., and his special envoy to the Middle East, Steve Witkoff.
World Liberty Financial has previously contested allegations that the investment improperly benefits the Trump family, positioning their financial ventures as legitimate innovations. They argue that the stablecoin could enhance U.S. competitiveness in the global market.
The GENIUS Act and Regulatory Implications
The GENIUS Act, which is slated for a vote, proposes a federal regulatory framework for stablecoins, which are cryptocurrencies pegged to a stable asset, often the U.S. dollar. Proponents of the bill believe that regulating stablecoins is crucial as they gain popularity among investors, asserting that oversight will protect consumers and maintain financial stability.
However, critics, including Senators Warren and Merkley, argue the legislation does not go far enough to ensure ethical standards in light of the potential for corruption linked to Trump’s family business interests. Warren has stated that passing a bill that enables the stablecoin market while facilitating actions that undermine national security and financial protection is unacceptable.
Previous conversations surrounding the GENIUS Act have revealed attempts by Senate Democrats to add amendments that would specifically prohibit sitting presidents and their families from profiting off stablecoin products. Ultimately, these amendments were not integrated into the final bill, which passed with a vote of 66 in favor and 22 against, signaling bipartisan support yet raising flags about ethical implications.
Conclusion
As the Senate gears up to vote on the GENIUS Act, the discussions surrounding Trump’s cryptocurrency dealings are likely to continue, reflecting broader concerns about the intersection of finance, politics, and governance. The outcome of this vote may set significant precedents in the rapidly evolving landscape of cryptocurrency and federal oversight, which is already facing scrutiny from various stakeholders in the financial and political arenas.
As this story develops, clarity on the Trump family’s crypto ventures and their implications for U.S. financial regulations remains a priority for Senate Democrats and the public alike.
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