Democratic Lawmakers Raise Concerns Over Reported Financial Links Between Binance and Trump-Tied Ventures

Democratic lawmakers are raising concerns over reported financial links between cryptocurrency exchange Binance and ventures tied to the Trump family

Two Democratic lawmakers are raising concerns over reported financial links between cryptocurrency exchange Binance and ventures tied to the Trump family, following a recently revealed $2 billion deal involving a Trump-backed digital token.

What Happened: Senators Chris Van Hollen of Maryland and Elizabeth Warren of Massachusetts penned a letter to top Treasury and Justice Department officials on Wednesday. They sought details on the matter and its implications for ongoing federal oversight of Binance, informed Bloomberg.

The inquiry follows a report that USD1, a stablecoin issued by a company controlled by the Trump family, was used in March to settle a multi-billion-dollar investment by Abu Dhabi’s MXG into Binance.

The transaction, which was disclosed by both sides on May 1, has sparked fresh scrutiny of Binance’s compliance record and raised ethical questions about political entanglements in digital asset markets.

Binance, which is the world’s largest crypto exchange, has already admitted to major compliance violations. Its former CEO, Changpeng Zhao, also pleaded guilty in 2023 and stepped down from his role. Zhao recently completed a short prison sentence in the U.S.

However, lawmakers contend that the new information linking the firm to political figures warrants further investigation, especially given the exchange’s checkered legal history.

In their letter, the senators pressed Treasury Secretary Scott Bessent and Deputy Attorney General Lisa Monaco to clarify what actions are being taken to ensure Binance is adhering to its previous plea agreement.

They also sought updates on Binance’s planned withdrawal from the U.S. market and whether the company ever sought clemency for Zhao from federal officials, an allegation that was previously reported by The Wall Street Journal.

What’s Next: The senators are also interested in learning if Binance discussed listing a new Trump-related stablecoin or its business with World Liberty Financial, another Trump-linked crypto venture, during any meetings with Treasury or Justice Department representatives.

Their letter comes a day after Democratic senators blocked a vote on a long-anticipated stablecoin bill.

While some lawmakers cited missing language in the bill for their objection, others, including Van Hollen and Warren, spoke out against a clause that would have barred Trump and other top officials from profiting from digital asset firms during or after their time in government service.

As a result, the legislation will remain in limbo for now, and it’s unclear when or if it will be able to advance further.