Senate Dems Probe Trump Crypto Empire and Envoy’s UAE Ties
Senate Democrats led by Adam Schiff have launched an ethics probe into Trump’s crypto empire and envoy Steve Witkoff’s personal holdings. In a letter signed by eight senators, they question discrepancies between Witkoff’s May claim of full divestment and his August disclosures showing retained stakes in crypto firms tied to the UAE and World Liberty Financial. The senators flag a $2 billion MGX-to-Binance investment using WLFI’s USD1 stablecoin and cite Financial Times data that Trump-linked ventures earned over $1 billion last year. They argue that Witkoff’s ongoing crypto interests pose a conflict of interest with his diplomatic role in the Middle East. A response is due by October 31. The probe into Trump crypto empire could signal potential regulatory changes for Binance and stablecoins.
Bearish
This ethics probe heightens regulatory scrutiny on Binance and related stablecoin issuers, creating short-term sell pressure as traders price in potential compliance costs and tighter oversight. In the long run, sustained conflict-of-interest investigations into Trump’s crypto empire could prompt U.S. lawmakers to introduce stricter rules, weighing on market confidence and growth prospects for Binance (BNB) and USD1-pegged tokens.