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A group of Democratic senators has sent a letter to the leaders of the U.S. Department of Justice and Treasury, expressing concern about President Donald Trump's relationship with the cryptocurrency exchange Binance and potential conflicts of interest in regulating the industry.
According to a May 9 report from Bloomberg, senators have requested Attorney General Pam Bondi and Treasury Secretary Scott Bessent to report on the steps that Binance has taken under the agreement made in November 2023 with U.S. authorities, amid reports that Trump and his family have strengthened ties with the exchange.
This settlement caused Binance to pay over $4 billion to the Department of Justice, Treasury, and the Commodity and Securities Trading Commission, and the then-CEO, Changpeng “CZ” Zhao, resigned.
However, since Trump was elected president in 2024, many lawmakers have accused the president of corruption for profiting from cryptocurrency while in a position that could influence industry laws and regulations.
Trump has introduced his own memecoin — this project has earned millions of dollars from transaction fees — and offered top Token holders the chance to attend an exclusive dinner in Washington, DC.
The cryptocurrency project supported by his family, World Liberty Financial, has also just announced that an Abu Dhabi-based investment firm, MGX, will make a $2 billion investment in Binance using the USD1 stablecoin of the platform.
"Concerns about Binance's compliance obligations have become more urgent amid reports that the company is using the Trump family's stablecoin to partner with foreign investment firms," the senators said in a letter to Bloomberg.
The letter was sent less than 24 hours after several senators blocked a crucial vote on stablecoin regulation legislation, known as the GENIUS Act. Senator Elizabeth Warren, who is said to have signed the letter and opposed proceeding with the stablecoin legislation, argued that the Senate should not endorse this type of 'corruption support' from Trump.
Bessent stated that the Senate 'missed an opportunity' by not passing the stablecoin legislation, but did not directly address any concerns regarding Trump's cryptocurrency interests. It is unclear whether the Senate will consider voting again on the bill.
According to a report on April 23 from the State Democracy Protection Organization, about 40% of Trump's net worth is tied to cryptocurrency. This group noted that the GENIUS Act, in its current version, 'would not prevent President Trump from using executive power to establish a regulatory environment and enforcement plan prioritizing his personal interests over the broader interests of stakeholders in the U.S.'
Amid concerns about stablecoins and proposed market structure bills, Zhao is said to have applied for a pardon from Trump. Although the former CEO has served a four-month prison sentence, his criminal pardon could allow him to become more deeply involved in the cryptocurrency industry through a management position.
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Source: https://tintucbitcoin.com/us-senators-call-for-binance-trump-investigation/
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