Democrats Request Financial Documents Tied to Trump's Cryptocurrency Dealings

They asked the Treasury Department for suspicious activity reports involving Trump-linked firms and digital tokens. The investigation targets potential financial misconduct and evaluates the need for new laws.

Democratic lawmakers have requested financial documents tied to former President Donald Trump's cryptocurrency dealings, citing legal and regulatory concerns.

Specifically, the lawmakers asked the Treasury Department for suspicious activity reports involving Trump-linked firms and digital tokens. The request is part of a broader investigation into Trump's financial conduct and assesses the need for new laws.

The request, dated June 1 and addressed to Treasury Secretary Janet Yellen, covers reports from early 2023, especially those flagging transactions by financial institutions. It also targets any transactions linked to Trump, his family members, or his campaign.

This investigation is focused on World Liberty Financial, a firm allegedly tied to Trump's expansion into the crypto world, and his Official Trump token, a digital currency endorsed by the former president.

Legislators expressed concerns with World Liberty Financial, as it might have received payments from international buyers for crypto-products, raising questions over foreign influence.

These requests follow a separate probe by the Securities and Exchange Commission (SEC) into crypto entrepreneur Justin Sun, who reportedly invested in World Liberty Financial.

However, the SEC’s move to stall action against Sun despite this probe has further worried lawmakers, especially with reports of his collaboration with Trump on a crypto push.

This investigation aims to determine if this Trump-connected crypto push was taking advantage of gaps in the law or was playing a role in circumventing campaign finance laws.

Regarding the Official Trump token, lawmakers pointed out that the structure of the token's sale does not allow for revealing the identities of buyers, which could raise compliance issues.

They cautioned that such anonymity can lead to the use of illegal political contributions or influence.

Democrats argue that the token could be used to channel secret money into Trump's politically affiliated activities. They want to investigate whether token holders got undue access or favour from Trump or affiliated political groups.

The relevant treasury documents might indicate whether these transactions violated financial or anti-corruption law.

The probe also includes possible securities violations linked to Trump's digital token ventures. If these tokens were deemed security, they would be subject to tighter rules.

Legislators attempt to establish whether the president benefited from these offerings during the reelection campaign activities.

The MEME Act, introduced to the Senate by the Senate Democrats on 6 May, seeks stricter regulation of political actors who venture into cryptos.

It aims to prohibit Trump and other federal officials from developing, promoting, or exchanging digital assets. The bill also covers high-level government officials' spouses and children.

The legislation followed Trump's increasing activities surrounding digital assets, such as meme coins and PR campaigns.

Lawmakers say such activity may compromise conflicts of interest or breach financial transparency. They wish to stop federal officials from using their position to enrich themselves crypto-wise.

The MEME Act goes hand in hand with other House inquiries of Trump's crypto relations, PACs, and donor exchanges.

Democrats are still holding the Treasury and DOJ to reports and disclosures. They gave a deadline of May 30th for submitting all the requested suspicious activity reports for review.