U.S. Senator Elizabeth Warren has requested a new U.S. national-security investigation into a specific segment of the cryptocurrency industry, focusing her concerns on PancakeSwap, a decentralized exchange she has identified as attempting to promote coins linked to President Donald Trump’s World Liberty Financial Inc.
Warren stated the exchange, which functions across multiple blockchains and is a key protocol on Binance’s chain, should be scrutinized for its ties to “any inappropriate political influence by the Trump Administration on enforcement decisions,” as noted in her Monday communication to Treasury Secretary Scott Bessent and Attorney General Pam Bondi. She reiterated a similar request from last month regarding WLFI.
“As Congress deliberates on crypto market structure legislation — including measures to prevent terrorists, criminals, and rogue states from exploiting decentralized finance (DeFi) for funding their operations — it is essential to comprehend whether you are thoroughly investigating these risks,” Warren wrote, serving as the ranking Democrat on the Senate Banking Committee, which must develop and approve the legislation before a Senate vote can occur.
Warren has largely been excluded from crypto discussions in her committee, as a notable number of her fellow Democrats have chosen to negotiate with Republicans regarding the bill aimed at regulating the broader U.S. cryptocurrency markets. This effort has failed to meet the industry’s expectations for action before year-end, with Senate Banking Committee Chairman Tim Scott indicating it will now be addressed in January.
Warren condemned DeFi platforms that “facilitate transactions worth hundreds of millions of dollars daily without requiring users to register or provide identification for trading.” The classification of DeFi remains a significant unresolved issue among the parties concerning the market structure bill, with industry insiders identifying it as a critical point that will influence support for the final legislation.
It is improbable that Trump’s administration will engage in an investigation related to the president’s business ventures. White House officials and the president maintain that his connections to cryptocurrency do not represent a conflict of interest.
This is yet another contentious point in the negotiations surrounding the market structure bill — a proposal from Democrats to prohibit senior government officials from maintaining business interests in the sector. While negotiators from both sides have expressed optimism regarding a compromise bill in the Senate, the White House has already dismissed some initial suggestions on this matter, raising concerns about the future of discussions slated to resume next month.
If negotiations extend beyond a few weeks into the new year, they could clash with Congress’ budget discussions, which culminate around a January 30 deadline. Previously, budget disputes led to a government shutdown lasting weeks, further postponing crypto legislation.
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