U.S. Senate's Warren Requests Probe into Trump-Linked DeFi Platform Amid Crypto Market Structure Bill Delays
Senator Elizabeth Warren has called for a national-security investigation into decentralized finance (DeFi), focusing particularly on PancakeSwap and its connections to World Liberty Financial Inc. (WLFI), an entity linked to former President Trump. On Monday, Warren sent a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, requesting an inquiry into possible improper political influence affecting enforcement decisions related to these connections. This request follows a prior inquiry last month concerning WLFI and Trump ties.
The investigation request coincides with ongoing delays in negotiations over crypto market-structure legislation, with Senate Banking Committee markup pending before a broader Senate vote can occur. Warren has criticized DeFi platforms, including PancakeSwap which operates across multiple blockchains and is a leading protocol on Binance's chain, for handling hundreds of millions of dollars daily without registration or identity verification.
A significant challenge in the legislative process remains a proposal to prohibit senior government officials from engaging in crypto-related business interests, a measure initially rejected by the White House. If discussions continue into January, the approaching January 30 budget deadline could further complicate legislative action, reminiscent of a previous budget dispute that delayed crypto legislation.
