The top-ranking Senate Democrat on the panel investigating corruption and mismanagement is questioning U.S. President Donald Trump’s recent cryptocurrency activities, raising concerns that they could be part of a “pay-to-play” scheme to offer access to the presidency to the highest bidder.
Richard Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations within the Committee on Homeland Security and Government Affairs, sent letters on Tuesday to Bill Zanker of Fight Fight Fight LLC and Zach Witkoff, co-founder of World Liberty Financial.
Senate panel investigates Trump-affiliated crypto ventures for potential conflicts of interest
These letters contained inquiries about the ownership and investment structure of several Trump-affiliated entities, including Fight Fight Fight LLC (the company behind the TRUMP meme coin), CIC Digital LLC (which issued Trump’s NFTs and co-owns Fight Fight Fight), Celebration Cards LLC (another Trump-affiliated NFT entity), DTTM Operations LLC (which manages Trump’s intellectual property), as well as World Liberty Financial and its affiliates.
According to the letters, the Permanent Subcommittee on Investigations is conducting a preliminary inquiry into potential conflicts of interest and legal violations involving President Trump’s cryptocurrency ventures and the financial dealings of associated businesses with foreign nationals, foreign governments, and other cryptocurrency firms.
One letter referenced World Liberty Financial, while the other pointed to the $TRUMP meme coin.
The letters suggested that these businesses “may be enabling the violation of government ethics requirements” and posed several questions for the companies’ executives.
These included inquiries on how the companies block investments from foreign governments, their revenue generation, and whether individuals facing prosecution or investigations can participate. Additionally, the letters requested records linked to the Trump-affiliated crypto businesses.
Democrats push back as Trump’s crypto dealings trigger legislative resistance
As Democrats are currently in the minority in the Senate, Blumenthal lacks subpoena power unless his Republican counterpart, Sen. Ron Johnson, agrees to support the effort. A spokesperson for Johnson did not immediately respond to a request for comment.
Democrats have sounded the alarm over Trump’s crypto businesses in recent days. Earlier Tuesday, Rep. Maxine Waters, who leads her party on the House Financial Services Committee, objected to a joint hearing with the House Agriculture Committee to address market structure legislation and instead hosted her own hearing focused on these crypto tie-ups.
A weekend statement from Sen. Ruben Gallego and several other Democrats, indicating they would not support the Senate’s stablecoin bill, also appears to be linked to Trump’s crypto activities. In particular, Eric Trump’s announcement that the Abu Dhabi-based investment firm MGX would use the Trump-affiliated USD1 stablecoin to close a $2 billion investment into Binance has raised concerns.
Additionally, Sen. Chris Murphy introduced a bill on Tuesday to ban the U.S. president and other senior government officials from issuing meme coins or other financial assets.
Trump’s expanding crypto ventures raise concerns over transparency and foreign influence
Donald Trump, who had previously criticized cryptocurrencies during his time as President, has since embraced the digital asset space through various ventures. His financial involvement in the crypto world has expanded considerably from the existing sale of Trump-branded NFTs in 2022 to the more recent endorsement of the $TRUMP meme coin project. While the investments appear to be all about brand monetization, the businesses are controversial because they are owned in a non-transparent manner and linked to foreign investors.
The Senate’s inquiry centers around several entities linked to Trump’s digital asset activities. These entities collectively represent a network of financial and promotional tools that have drawn scrutiny due to their potential for foreign funding and political implications.
At the heart of the investigation is the question of whether these cryptocurrency businesses could enable influence-buying or foreign interference in American politics. Lawmakers fear that without proper oversight, such ventures might violate U.S. ethics laws and potentially allow adversarial entities to gain backdoor access to a future Trump presidency.
Government ethics rules prohibit federal officials from profiting off their positions or using their brand in ways that could present conflicts of interest. If Trump’s crypto ventures are found to be accepting investments from foreign actors or enabling individuals facing legal scrutiny to participate, it could lead to significant legal and political fallout.
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