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A group of Democratic U.S. senators is urging federal authorities to investigate Binance’s connections to World Liberty Financial, a cryptocurrency venture linked to the Trump family. This request follows a $2 billion investment that has raised concerns about regulatory compliance and political influence.

Senators Call for Federal Review

In a formal letter addressed to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, Senators Elizabeth Warren, Chris Van Hollen, Sheldon Whitehouse, and Richard Blumenthal demanded a thorough review of several critical issues. These include the $2 billion transaction, Binance’s planned exit from the U.S. market, and whether a potential pardon for former Binance CEO Changpeng Zhao (CZ) is under consideration.

The senators’ request was prompted by revelations that Abu Dhabi-based firm MXG utilized USD1—a stablecoin issued by World Liberty Financial—to complete its investment in Binance. The transaction, disclosed on May 1, has sparked concerns about potential regulatory violations and the role of political connections in the cryptocurrency industry.

Stablecoin Tied to the Trump Family

World Liberty Financial, co-founded by Zach Witkoff, is reportedly linked to the Trump family. During a panel appearance at the Token2049 conference in Dubai, Witkoff confirmed that USD1 was specifically chosen to facilitate the $2 billion investment. Eric Trump also participated in the event, further highlighting the Trump family’s involvement in the venture.

Binance’s Troubled Compliance History

Binance has faced significant regulatory challenges in the U.S. In a previous settlement, the exchange admitted to violating anti-money laundering (AML) and sanctions laws, agreeing to pay $4.3 billion in fines. As part of the plea deal, CZ stepped down as CEO and spent four months in U.S. custody. Binance also pledged to exit the U.S. market altogether.

The senators expressed concerns over Binance’s use of a Trump-affiliated stablecoin, stating that it raises “urgent questions” about the exchange’s compliance with regulatory standards. They also referenced reports suggesting that CZ had lobbied for a potential presidential pardon and that the Trump family may have explored acquiring a stake in Binance.US.

Demands for Transparency

Lawmakers have requested updates by May 21 regarding Binance’s adherence to its plea agreement, the timeline for its U.S. market exit, and any communications with federal agencies concerning USD1 or potential pardons. The senators emphasized the need for transparency to ensure that regulatory frameworks are upheld.

Impact on Stablecoin Legislation

These developments occur amid broader debates over stablecoin regulation. Senate Democrats recently blocked a stablecoin bill, citing the lack of safeguards to prevent senior officials, including the Trump family, from profiting from cryptocurrency ventures while in office. While the bill’s future remains uncertain, discussions are ongoing to address these concerns.

The evolving relationship between cryptocurrency exchanges, stablecoins, and political influence underscores the importance of regulatory scrutiny in the digital asset space. As the industry continues to grow, ensuring compliance and transparency will be critical to maintaining trust and fostering innovation.

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