Senator Elizabeth Warren Calls for National-Security Probe into DeFi and Trump-Linked Crypto Interests Amid Stalled Market Bill
Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, has requested a national-security investigation into decentralized finance (DeFi) and its alleged ties to President Donald Trump’s business interests.
The probe specifically focuses on PancakeSwap, a cross-chain decentralized exchange operating on Binance Smart Chain and other blockchains, which has been flagged for potentially amplifying coins linked to World Liberty Financial Inc. (WLFI), a company described as Trump-connected.
Warren sent a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi seeking a review of possible improper political influence on enforcement decisions related to these connections.
This move coincides with stalled negotiations on a crypto market structure bill aimed at regulating crypto markets and preventing illicit financing via DeFi. Treatment of DeFi remains a significant point of contention between Democrats and Republicans, delaying progress on the bill, now pushed to January.
The White House has stated that Trump’s crypto ties do not constitute a conflict of interest, while Democrats advocate for a ban on senior government officials engaging in crypto-related business interests.
If the negotiations extend into January, the concurrent budget discussions with a January 30 deadline could jeopardize or further delay the passage of the crypto legislation.
