US Senator Elizabeth Warren, a prominent critic of digital assets in Congress, is seeking information from officials in the Justice and Treasury Departments regarding a potential investigation into decentralized crypto exchanges, specifically PancakeSwap and Uniswap.
In a letter sent on Monday to Treasury Secretary Scott Bessent and US Attorney General Pam Bondi, Warren inquired if their departments were “investigating significant national security risks posed by decentralized cryptocurrency exchanges like PancakeSwap.”
The Massachusetts senator expressed concerns over “improper political influence” from the Trump administration regarding the selective enforcement of regulations on crypto companies and highlighted issues of money laundering associated with North Korea, requesting 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) to finance their activities—it is essential to know whether you are actively investigating these risks,” Warren wrote to Bessent and Bondi, adding:
“The public deserves to know if you are looking into the significant risks identified by national security experts and the crypto industry.”
Warren’s letter emerged as the US Senate was set to conclude its activities before the holiday recess. 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 for the legislation has been postponed to 2026.
Related: Top US Democrat signals fight over crypto market structure
The Massachusetts senator also raised alarms over reports of PancakeSwap allegedly promoting coins issued by the Trump family’s main crypto venture, World Liberty Financial, among traders.
Concerns have been voiced by some Senate Democrats regarding the potential influence and conflicts of interest involving the US president and his family’s connections to the crypto industry, particularly in relation to the legislation.
XRP lawyer who challenged Warren in 2024 will run again
John Deaton, the attorney who opposed Warren in the 2024 US election, is launching another congressional campaign. Deaton has emerged as a significant advocate for XRP (XRP) holders in legal matters, becoming a notable figure within the cryptocurrency sector over recent years.
In November, he declared his intention to run as a Republican for the US Senate once again in 2026. Warren is not seeking reelection next year, which means Deaton will be vying to unseat Democratic Senator Ed Markey.
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