Treasury Pressured to Expose Binance Ties to Trump’s Crypto Venture

The U.S. Senate Committee on Banking, Housing, and Urban Affairs announced on May 9 that five Democratic Senators had sent a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi demanding answers about federal oversight of Binance

Five Democratic senators are pressing Treasury Secretary Scott Bessent and Attorney General Pam Bondi to disclose any ties between Binance and the Trump family's new crypto venture, according to a letter seen by CoinDesk.

The senators, led by Chris Van Hollen (D-MD), Elizabeth Warren (D-MA), Richard Blumenthal (D-CT), Sheldon Whitehouse (D-RI), and Mazie Hirono (D-HI), grew more pressing in their inquiry into the Treasury and Justice Department’s oversight of Binance following the exchange’s 2023 guilty plea and settlement.

"We are writing with concerns about recent reports of meetings between Binance executives and officials from the Treasury Department and the administration of Justice," the lawmakers began.

They continued: "According to the *Wall Street Journal*, the discussions concerned the company’s compliance obligations set in place following Binance’s 2023 guilty plea and settlement in federal court on charges of money laundering, operating an unlicensed money transmitting business, violating U.S. sanctions laws, and failing to prevent and report suspicious transactions with terrorist groups, including Hamas and ISIS."

The inquiry highlighted concerns over links between the cryptocurrency exchange and the Trump family’s new crypto venture, World Liberty Financial.

"Our concerns about Binance’s compliance obligations are even more pressing given recent reports that the company is using the Trump family’s stablecoin to partner with foreign investment companies," the senators wrote. They added: "We are also mindful of reports that the Trump family is launching a new crypto venture, reportedly called World Liberty Financial, which they are rolling out in partnership with Binance and reportedly seeking to use to open a bank in the Bahamas."

The senators went on to voice alarm over reports that the administration is rolling back regulatory scrutiny on crypto firms in response to complaints from industry executives.

"As the Administration loosens oversight on an industry where bad actors have violated money laundering and sanctions law, it is not surprising that Binance, which has admitted to prioritizing its own growth and profits over compliance with U.S. law, would seek to reduce the regulatory scrutiny on its activities," the lawmakers wrote.

The 2023 plea agreement saw Binance admit to exiting the U.S. market and submit to multi-year supervision by independent monitors selected by the Financial Crimes Enforcement Network and the Department of Justice. Former CEO Changpeng Zhao (CZ) also pleaded guilty to several charges and received a four-month prison sentence.

Concerns have mounted in recent months over reports that the Trump family is financially interwined with Binance’s operations.

In April, the Financial Times reported that Binance was planning to launch a new investment fund in partnership with Ivanka Trump and Donald Trump Jr.'s company, holding an interest in a Bahamian bank. The venture was said to be using the Trump family’s stablecoin, USD1, to attract investments from China and the Middle East.

The senators' letter highlighted these reports, demanding details about the Treasury and Department of Justice’s actions to enforce the terms of Binance’s settlement, the status of its U.S. exit and any communications concerning a potential pardon for Zhao or discussions about USD1.

"We request a copy of any correspondence, communication or internal memoranda concerning any discussions, proposals or plans to pardon or grant clemency to Mr. Zhao," the senators wrote.

They added: "We further request any documents concerning the Trump family’s new crypto venture, World Liberty Financial, including any correspondence, communication or internal memoranda concerning the administration’s knowledge of this venture and any role that Treasury or DOJ played in facilitating it."

The senators' request comes amid broader concerns that the administration is rolling back U.S. efforts to combat illicit finance in response to complaints from crypto executives and lobbying groups.

While critics of crypto argue that the administration is rolling back enforcement and allowing crypto firms to operate with impunity, others warn that overly aggressive regulation risks stifling American leadership in blockchain innovation.