U.S. Senators Urge Accountability in Stablecoin Transactions
In a recent development, U.S. Senators Elizabeth Warren (D-MA) and Jeff Merkley (D-OR) have formally urged investment firm MGX and cryptocurrency exchange Binance to safeguard documentation and correspondence pertinent to the stablecoin USD1, associated with the Trump-affiliated World Liberty Financial. This request came in a letter dated June 11, as reported by the senators in their communication to both companies’ CEOs.
Concerns Over a $2 Billion Transaction
The focus of this inquiry revolves around a significant $2 billion transaction settlement between MGX and Binance involving USD1—an arrangement that has raised eyebrows regarding any potential influence from former President Donald Trump’s financial interests linked to the stablecoin. Warren and Merkley’s letter emphasizes the need for clarity on whether Trump’s ownership in USD1 impacted decisions made by these firms regarding the adoption of this particular stablecoin versus other payment options devoid of presidential ties.
Requests for Documentation and Communication
Additionally, the senators have specified their request for detailed records pertaining to key figures associated with World Liberty Financial, which not only includes Donald Trump and his immediate family members—his sons Barron, Eric, and Donald Jr. —but also other co-founders of World Liberty Financial, namely Chase Herro, Zak Folkman, Zach Witkoff, and Alex Witkoff. They are also keen on communications involving Steve Witkoff, who holds the title of Special Envoy to the Middle East under Trump.
Senators’ Stance on USD1
In a statement reflecting their stance, Warren and Merkley expressed their support for bolstering the U.S. dollar. However, they voiced their opposition to utilizing USD1, as it appears to financially benefit Trump and his relatives during a time when the legitimacy of such dealings is under scrutiny.
Previous Inquiry into Trump’s Cryptocurrency Deal
These concerns are not isolated; they follow a previous letter sent on May 5, where the senators called upon the Office of Government Ethics to launch an inquiry into the implications of the multibillion-dollar deal undertaken by the Trump family’s cryptocurrency project. The senators noted the alarming possibility that both the Trump and Witkoff families may leverage USD1 to unjustly profit from foreign corruption links.
Deadline for Response
Warren and Merkley have set a deadline for Binance and MGX to provide a response by June 24, underscoring the urgency of their request amid rising concerns about financial ethics and transparency in transactions involving political figures.
