As U.S. lawmakers continue negotiating the framework for regulated crypto markets, Senator Elizabeth Warren is increasing political pressure on President Donald Trump’s financial interests in the digital asset sector. The Massachusetts Democrat, alongside Senator Jack Reed, has raised concerns over alleged activities tied to Trump-linked World Liberty Financial Inc. (WLFI).
In a letter sent to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, the senators requested information regarding reports that WLFI had sold tokens to “North Korea, Russia and other illicit actors.” The allegations, first flagged by watchdog group Accountable.us, suggest potential failures in WLFI’s due diligence procedures.
Concerns over sanctions evasion and financial crimes
Warren and Reed warned that the reported token sales “raise serious questions” about whether WLFI’s offerings may have enabled sanctions evasion, money laundering, or terrorist financing. They argue that Trump’s continued business involvement in crypto creates an inherent conflict of interest as his administration pushes for more industry-friendly policies.
Democrats in both chambers have repeatedly highlighted the risks of presidential ties to private crypto ventures, calling for stricter rules preventing senior officials from holding interests that could benefit from federal policymaking.
Crypto legislation efforts face political tension
Ordinarily, resistance from the top Democrat on the Senate Banking Committee could derail momentum for a major financial bill. However, Democratic members remain split on crypto regulation. While Warren maintains a firm stance that the industry poses systemic risks, others on the committee continue to negotiate behind closed doors.
Advocates for the bipartisan market structure bill remain hopeful that the Senate Banking Committee will advance a draft before year-end, though parallel legislation in the Senate Agriculture Committee still contains significant gaps. Crypto lobbyists have noted the unusual secrecy of ongoing discussions a sign, they say, that substantive negotiations may be underway.
Republican lawmakers, meanwhile, have consistently rejected proposals to bar presidents or senior officials from holding crypto-related business interests, a key point of contention in the talks.