Probe Trump Crypto Deal Amid UAE’s $2B WLFI Investment
Senators Elizabeth Warren and Elissa Slotkin have called for a federal probe into the Trump crypto deal following two linked May agreements: U.S. approval of AI chip exports to the UAE and a $2 billion UAE-backed investment in World Liberty Financial (WLFI), co-founded by the Trump family. In letters to the Commerce and State Departments’ inspectors general and the Office of Government Ethics, they cited potential ethics violations and conflicts of interest involving ex-State official Steve Witkoff and AI/crypto adviser David Sacks. They argue the Trump crypto deal and AI chip export deal risk national security and private enrichment. The White House responded that Witkoff is divesting and Sacks holds an ethics waiver.
Bearish
This news raises regulatory and ethics concerns around the Trump crypto deal and WLFI investment, likely triggering short-term selling pressure as traders react to increased investigation risk. In the long term, continued scrutiny and potential findings of conflicts of interest could dampen investor confidence and market activity in WLFI and related tokens, weighing on price stability.