U.S. senators ask goverment to consider Binance-Trump ties
Senators question Trump-Binance ties, urging DOJ to review potential conflicts.
A group of Democratic senators has raised concerns over potential conflicts of interest involving President Donald Trump and cryptocurrency exchange Binance, urging the Department of Justice (DOJ) and Treasury to assess the situation.
The senators requested information on the measures Binance has implemented as part of its $4 billion settlement with US regulators in November 2023, reports Bloomberg.
The deal included the resignation of then-CEO Changpeng Zhao and compliance obligations aimed at curbing financial misconduct. The senators claim that since Trump’s election, his family’s expanding ties with Binance — particularly through World Liberty Financial (WLFI) and the USD1 stablecoin — pose risks to regulatory integrity.
Binance settlement under new scrutiny amid Trump’s crypto ventures
The DOJ and Treasury are being asked to clarify the scope of Binance’s compliance efforts under the settlement, especially given recent reports of MGX, an Abu Dhabi-based investment firm, using Trump-backed USD1 to facilitate a $2 billion investment in Binance.
Lawmakers argue that Trump’s ongoing promotion of his memecoin, which generates significant transaction fees, further complicates his administration’s regulatory stance. Critics claim the potential for political profiteering undermines the credibility of regulatory oversight, particularly as Binance remains under scrutiny for its compliance practices.
Concerns over influence and oversight in crypto regulation
Senators emphasized that Trump’s financial entanglements with Binance could compromise the objectivity of regulatory actions, especially as World Liberty Financial gains prominence in the stablecoin market. USD1’s rapid rise — fueled by MGX’s investment — has drawn criticism as a vehicle for foreign capital to gain access to US markets through Binance’s platform.
In their letter, the senators warned that regulatory leniency toward Trump’s ventures could set a precedent for conflicts of interest, further complicating the government’s stance on crypto regulation. The DOJ and Treasury have yet to respond to the senators’ request for a comprehensive review.
Recently we wrote that USD1 is at the center of political and financial debate as the U.S. Senate prepares to vote on the GENIUS Act, a pivotal bill aimed at regulating stablecoins.
