Two Democratic lawmakers from the US Senate Banking Committee and Senate Agriculture Committee, set to vote on a market structure bill shortly, have indicated their opposition to the legislation unless an investigation into two White House officials is conducted.
In a letter addressed Tuesday to officials from the US State Department, Commerce Department, and Department of Ethics, Senators Elizabeth Warren and Elissa Slotkin requested that authorities look into US President Donald Trump’s AI and crypto advisor, David Sacks, and his Special Envoy to the Middle East, Steve Witkoff.
The two senators made it clear that, without clarity on whether “politically connected crypto interests are jeopardizing our national security,” they would not support the current legislation aimed at establishing a digital asset market structure in the Senate.
The letter from Warren and Slotkin was triggered by a Sept. 15 New York Times article that detailed a $2-billion deal between Abu Dhabi-based MGX and cryptocurrency exchange Binance. This investment, announced in March, was facilitated using the USD1 stablecoin from the Trump family’s crypto business, World Liberty Financial. The New York Times reported that Sacks and Witkoff enabled the deal by granting the UAE access to AI chips.
“In our nation’s foreign policy history, it is rare to find two high-ranking officials with such severe conflicts of interest making decisions related to national security,” wrote the senators. “Such blatant conflicts have no place in the US government, and we urge a prompt and thorough investigation into these claims.”
The letter further stated:
“This information is also vital as Congress deliberates on legislation regarding digital asset market structure to ensure that crypto-related corruption does not jeopardize our national security.”
Related: Trump’s World Liberty mints 9% of USD1 supply after Waller speech
Warren, the ranking member of the Senate Banking Committee, and Slotkin, a member of the Senate Agriculture Committee, represent key votes that could signal the stance of other Democrats when the chamber is likely to address the market structure bill.
Recently, a coalition of 12 Democrats expressed their willingness to collaborate with Republicans on market structure, contingent on support for measures aimed at “preventing corruption and abuse” and other stipulations in any forthcoming bill. In August, Warren emphasized her support for regulating digital assets but rejected any legislation “crafted by the crypto industry.”
Crypto bill already delayed after congressional recess
While the US House of Representatives initially encountered some obstacles with its market structure bill due to Republican concerns over central bank digital currencies (CBDCs), it progressed through the chamber in July, along with the stablecoin GENIUS bill and the Anti-CBDC Surveillance Act. The House market structure bill, identified as the CLARITY Act, passed with bipartisan backing, receiving support from 78 Democrats.
However, once it transitioned to the Senate, the legislation encountered similar hurdles. Senator Cynthia Lummis of Wyoming, a banking committee member and a key advocate of the market structure bill, stated in August that Republicans aimed to advance the bill out of committee by the month’s end. Nevertheless, no vote had been scheduled on the banking committee’s calendar at the time of publication.
A source familiar with the matter informed Cointelegraph that Republicans were in discussions with Democrats regarding the Senate bill, named the Responsible Financial Innovation Act, and were optimistic about enacting the legislation by 2026. Cointelegraph attempted to reach the White House for comments but had not received a response at the time of publication.
Magazine: How do the world’s major religions view Bitcoin and cryptocurrency?
