Senate Democrats Press for Clarity on Trump’s Crypto Ties and Binance Dealings
U.S. Senate Democrats are intensifying scrutiny over former President Donald Trump’s reported connections to cryptocurrency firms—particularly Binance—amid growing concerns about regulatory compliance and political influence in the digital asset space.
In a formal letter sent Friday to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, a group of Democratic lawmakers led by Senators Elizabeth Warren, Chris Van Hollen, and Richard Blumenthal called for detailed explanations regarding the Trump administration’s oversight of Binance. The letter reflects mounting unease over how cryptocurrency firms may be leveraging political ties to navigate legal and regulatory challenges.
Binance, the world’s largest cryptocurrency exchange by trading volume, pleaded guilty to federal charges in 2023. The company agreed to pay a $4 billion settlement and accepted the appointment of a compliance monitor for three years. Former CEO Changpeng Zhao also served a four-month prison sentence as part of the deal after resigning from his role.
The senators cited recent reports that Trump's family members had engaged in discussions with Binance representatives regarding potential business arrangements. Notably, a March investigation suggested that intermediaries for the Trump family were exploring financial opportunities with Binance.
Tensions further escalated last week after Zach Witkoff, co-founder of World Liberty Financial (WLFI), announced a $2 billion agreement involving Binance and Abu Dhabi investment firm MGX. The deal will reportedly use WLFI’s stablecoin, USD1—a digital asset project linked to Donald Trump and three of his sons. The association between a politically prominent family and a regulated crypto firm has raised red flags for lawmakers.
“Our concerns about Binance’s compliance obligations are even more pressing given recent reports that the company is using the Trump family’s stablecoin to partner with foreign investment companies,” the senators wrote in their letter.
Neither Binance, the Department of Justice, nor the Treasury Department provided an immediate response to inquiries.
The issue has already stirred debate in Washington. Earlier this week, some House Democrats boycotted a crypto-focused hearing led by Republican lawmakers, citing discomfort with Trump’s growing influence in the space. On Thursday, Senate Democrats also blocked a vote on a stablecoin regulation bill, citing incomplete legislative language. Some Republican senators accused them of using procedural objections as a means to curb Trump-aligned initiatives.
In addition to seeking information about Trump’s crypto ties, the Senate letter requests clarity on how federal departments plan to enforce Binance’s plea agreement. The lawmakers are also questioning whether a presidential pardon could be considered for Zhao—an issue that could carry significant political and regulatory implications.
They have asked for formal responses by May 21.