US Senators Push for Probe Into ‘Foreign Crypto Deals’ Amid Ongoing Market Structure Stalemate

Two senior Democratic senators are pressing for a federal investigation into potential conflicts of interest tied to major foreign crypto transactions, warning the issue is critical as Congress debates the landmark digital asset market structure bill. The probe, led by Senators Elizabeth Warren and Elissa Slotkin, centers on allegations that White House officials may have facilitated billion-dollar crypto deals involving the Trump family’s World Liberty Financial and Binance, raising national security and regulatory concerns.

Senators Warren and Slotkin Sound Alarm on Foreign Influence

On Tuesday, Warren (Senate Banking) and Slotkin (Senate Agriculture) sent a letter to the State Department, Commerce Department, and Department of Ethics, urging a sweeping review of deals involving AI and crypto czar David Sacks and Special Envoy Steve Witkoff. The senators cited a recent $2 billion partnership between Abu Dhabi investment firm MGX and Binance, settled using USD1 the stablecoin issued by World Liberty Financial, a Trump-affiliated entity.

The letter alleges that Sacks and Witkoff may have secured the deal by negotiating Middle Eastern access to valuable US AI chips, a revelation first reported by The New York Times.

“Such unbridled conflicts of interest have no place in the US government,” Warren and Slotkin wrote, arguing that crypto-powered foreign investments could undermine national security as lawmakers craft new rules for digital assets.

Crypto Market Structure Bill Hits a Political Hurdle

The controversy comes as the Senate continues to wrestle with comprehensive digital asset market structure legislation:

• CLARITY Act: Passed the House with bipartisan support in July 2025, featuring provisions to clarify the regulatory roles of the SEC and CFTC in US crypto oversight.
• Senate Stalemate: The bill, now before the Senate Banking Committee, is stalled over partisan disagreements and rivalry between Democrats and Republicans over central bank digital currencies (CBDCs), stablecoin regulation, and market surveillance.
• Responsible Financial Innovation Act: Senators are also reviewing a parallel draft, focusing more on SEC oversight for “ancillary assets,” in contrast to the CFTC-centric approach favored by the House.

No full Senate vote on market structure is scheduled as of this week with some aides suggesting discussions could slip into late October. Key Democratic votes including those of Warren and Slotkin could make or break the bill’s prospects, with both senators emphasizing anti-corruption, security, and transparency measures.

Spotlight Intensifies on Stablecoin Oversight and Executive Influence

This heightened scrutiny comes after a series of significant legislative moves:

• Passage of the bipartisan GENIUS Act for stablecoin regulation, and the Anti-CBDC Surveillance Act in the House.
• Ongoing White House efforts to align SEC and CFTC digital asset oversight, including a push for “harmonization” roundtables with industry leaders from Kraken, Crypto.com, and decentralized prediction markets.

Warren’s outspoken stance signals ongoing Democratic unease about crypto industry-driven policy. She has expressed support for digital asset regulation, but vowed to oppose any bill perceived as “written by the crypto industry” a reference echoed by several Senate colleagues.

What’s Next? Crucial Weeks for US Crypto Policy

• Bipartisan negotiations: Senators from both parties are in talks to salvage a market structure bill before year-end, with crypto regulation and stablecoin standards seen as top policy priorities.
• Delayed timeline: Senate leadership and the White House now anticipate a final bill and comprehensive regulatory framework for digital assets could be signed into law by 2025 or 2026.
• Continued debate: Scrutiny over foreign crypto deals underscores the urgency of American lawmakers to clarify, update, and enforce digital finance law before further global competition emerges.

As foreign crypto investments draw new heat in Washington, the next chapter in US digital asset regulation balancing innovation, national security, and market integrity could shape the global future of cryptocurrency.