US Senators Urges Treasury and DOJ to Review Trump’s Crypto Links to Binance

Highlights:

• Senators demand clarification on Binance’s connections to Trump and oversight actions.
• Lawmakers request updates on Binance’s plans to leave the U.S. and pardon talks.
• Growing concerns among Democrats about Trump’s role in shaping crypto laws.

Democratic senators are intensifying their investigation into corruption claims involving President Donald Trump. They are seeking information about Binance’s connections to the Trump family. On May 9, Bloomberg reported that Senators Elizabeth Warren and Chris Van Hollen, along with four other Democratic colleagues, wrote to Treasury Secretary Scott Bessent and Attorney General Pam Bondi. They are demanding clarification on how the Trump administration oversaw Binance.

This move follows recent news that MGX, based in Abu Dhabi, plans to invest $2 billion in Binance using the USD1 stablecoin, issued by Trump-linked World Liberty Financial. The senators have asked for a response by May 21. They want to know what steps federal agencies have taken to monitor Binance’s agreement with authorities.

According to Bloomberg, U.S. Democratic senators have asked the Treasury and DOJ to clarify whether Binance is linked to the Trump family, citing concerns over USD1 being used to fund Abu Dhabi’s $2B investment in Binance. They also questioned Binance’s continued U.S. operations…

— Wu Blockchain (@WuBlockchain) May 9, 2025

Lawmakers Demand Clarity on Binance’s U.S. Exit and Ties to Trump-Linked Financial Groups

Lawmakers asked for an update on Binance’s planned U.S. exit and a clear timeline for when it will take place. They also want to know if the exchange spoke with Treasury or DOJ officials about a possible pardon for its former CEO, Changpeng Zhao. The letter further questioned any discussions involving WLFI or plans to list its stablecoin.

The senators pointed out that Binance previously admitted its involvement in anti-money laundering (AML) violations and paid over $4 billion to settle these charges. This settlement included agreements with the Justice Department, Treasury, and Commodity Futures Trading Commission. As part of the deal, Binance’s former CEO, Changpeng Zhao, was required to step down. They also noted that most of the stablecoin’s supply operates on the BNB Chain, which Binance oversees. 

They said this adds to their concerns about possible connections between Binance and financial groups linked to Trump. According to them, such ties could weaken financial oversight and threaten national interests. Because of this, they questioned whether a company with such a background should be allowed to keep operating in the U.S. market.

The senators added:

“The notion that this administration might permit Binance to continue operating and expanding in the United States is deeply troubling, particularly given that the company has shown time and time again its disregard for federal law and regulations that keep Americans safe.”

Growing Concerns Over Trump’s Ties to Crypto

Some Democrats are growing more worried about Trump’s link to crypto. These concerns are now affecting work on new crypto laws. Earlier this week, a few House Democrats walked out of a crypto hearing led by Republicans. They said Trump’s role in crypto was one reason. 

On Thursday, Senate Democrats also blocked a stablecoin bill from moving forward. They said the bill wasn’t ready, but some Republicans claimed it was really about stopping Trump. A report on April 23 said about 40% of Trump’s wealth is linked to crypto. It warned the GENIUS Act may let him shape crypto rules for personal gain.

[https://t.co/js1cF5YYGT] Warren, Wyden, Van Hollen, Colleagues Question Fed and OCC on Serious Risks Posed by Donald Trump Regulating His Own Stablecoin$WLFI pic.twitter.com/bpkimMu1Jj

— BecauseBitcoin.com (@BecauseBitcoin) March 28, 2025