U.S. Senator Elizabeth Warren, one of the more vocal critics of digital assets in Congress, is seeking clarification from officials in the Justice and Treasury Departments regarding a potential investigation into decentralized crypto exchanges, specifically referencing PancakeSwap and Uniswap.
In a letter sent on Monday to Treasury Secretary Scott Bessent and U.S. Attorney General Pam Bondi, Warren inquired whether their departments were “investigating significant national security risks posed by decentralized cryptocurrency exchanges like PancakeSwap.”
The Massachusetts senator expressed concerns about “improper political influence” from the Trump administration affecting the selective enforcement of rules on crypto companies, as well as reports of money laundering related to North Korea, and requested a response by January 12.
“As Congress evaluates crypto market structure legislation—including measures to prevent terrorists, criminals, and rogue states from exploiting decentralized finance (DeFi) for funding their actions—it is essential to know whether you are rigorously investigating these risks,” Warren stated in her letter to Bessent and Bondi, adding:
“The public deserves to understand whether you are addressing the serious risks flagged by national security experts and the crypto industry itself.”
Warren’s letter was sent as the U.S. Senate was preparing to conclude its activities before breaking for the holidays. Some Republicans on the Banking Committee had anticipated discussing the digital market structure bill, known as the Responsible Financial Innovation Act, before year’s end. However, Chair Tim Scott confirmed on Monday that a markup hearing on the legislation had been postponed to 2026.
Related: Top U.S. Democrat signals fight over crypto market structure
The Massachusetts senator also voiced concerns about reports suggesting that PancakeSwap had been “gaining traction among traders to use coins issued by the Trump family’s primary crypto firm, World Liberty Financial.”
Some Senate Democrats have expressed worries about potential influence and conflicts of interest from the U.S. president regarding the legislation, due to his and his family’s connections to the crypto sector.
XRP lawyer who challenged Warren in 2024 will run again
John Deaton, the attorney who ran against Warren in the 2024 U.S. election, is making another attempt for a Congressional seat. Deaton has been a vocal advocate for XRP (XRP) holders in legal matters, emerging as a key player in the cryptocurrency arena in recent years.
In November, he announced his candidacy as a Republican for the U.S. Senate again in 2026. Since Warren isn’t up for reelection next year, Deaton is set to challenge Democratic Senator Ed Markey.
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