
Five Senate Democrats want hearings into whether a $500M Abu Dhabi investment in Trump-linked crypto venture World Liberty Financial influenced policy. The deal's timing and subsequent AI chip access raise conflict-of-interest questions.
Senate Democrats want hearings into whether the Trump administration's policy decisions were influenced by a $500 million crypto investment from Abu Dhabi royalty. The letter, signed by Senators Warren, Peters, Wyden, Durbin, and Blumenthal, was sent to Republican leadership Tuesday.
The deal itself is getting closer scrutiny. According to The Wall Street Journal, an investment vehicle backed by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser, took a 49% stake in World Liberty Financial, the decentralized finance and stablecoin venture where President Trump and his three sons serve in advisory roles. Eric Trump signed the agreement four days before his father took office in January 2025.
Half the $500 million went out immediately. Of that, $187 million flowed to entities controlled by the Trump family. Another $31 million went to associates of Steve Witkoff, who co-founded World Liberty and later became U.S. Special Envoy to the Middle East.
The senators argue Congress must examine whether the UAE's money shaped policy. With Republicans controlling the Senate and its committees, they get to decide if hearings happen.
A second concern surfaced months after the investment closed. The Trump administration unveiled a framework that gave the UAE access to thousands of AI chips, overriding warnings from U.S. national security officials about potential Chinese access to that technology.
President Trump has said he had no knowledge of the $500 million transaction and isn't involved in World Liberty's day-to-day operations.
The Democratic letter points to broader administration moves favoring crypto. The White House relaxed certain financial rules for crypto service providers and dissolved the Justice Department's cryptocurrency enforcement division.
Senator Warren previously asked Treasury Secretary Scott Bessent to review whether the Abu Dhabi stake required a national security assessment. Representative Ro Khanna opened a separate House inquiry.
Democrats have also questioned the SEC's decision to drop a fraud investigation into Justin Sun, a major World Liberty backer.
In May, Senator Welch and Representative Min began probing presidential pardons, including one for Binance co-founder Changpeng Zhao. That pardon followed Binance's acceptance of a $2 billion investment from an Abu Dhabi fund, with payment terms requiring use of World Liberty's stablecoin, USD1.
Reports say the Trump family has now generated over $1 billion from crypto-linked ventures. World Liberty is also pursuing a federal banking charter.
The controversy has created uncertainty around the CLARITY Act, a proposed federal crypto regulation framework. Several Democratic legislators say they will withhold support unless ethics clauses are added to address potential conflicts of interest tied to Trump's crypto holdings.
A spokesman for the Senate Republican leader did not immediately respond to a request for comment on whether hearings would be scheduled.
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