The top 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 Homeland Security and Governmental Affairs Committee, sent letters Tuesday to Bill Zanker of Fight Fight Fight LLC and Zach Witkoff, co-founder of World Liberty Financial.
Senate panel investigates Trump-affiliated cryptocurrency firms for potential conflicts of interest
These letters contained questions 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 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 investigation into potential conflicts of interest and legal violations involving President Trump's cryptocurrency ventures and the financial transactions of businesses associated with foreign nationals, foreign governments, and other cryptocurrency ventures.
One letter referenced World Liberty Financial, while the other pointed to the meme coin $TRUMP.
The letters suggested that these businesses "may be facilitating violations of government ethics requirements" and raised several questions for company executives.
These included questions about how the companies block foreign government investments, their revenue generation, and whether individuals facing prosecution or investigations could participate. The letters also requested records related to cryptocurrency businesses affiliated with Trump.
Democrats respond as Trump's crypto dealings spark legislative resistance
Because Democrats are currently in the minority in the Senate, Blumenthal lacks subpoena power unless his Republican counterpart, Senator 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 about Trump's cryptocurrency dealings in recent days. Earlier on Tuesday, Representative Maxine Waters, who leads her party on the House Financial Services Committee, opposed a joint hearing with the House Agriculture Committee to address market structure legislation and instead held her own hearing focused on these crypto connections.
A statement over the weekend by Senator 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 in Binance has raised concerns.
Additionally, Senator 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 growing cryptocurrency ventures raise concerns about transparency and foreign influence
Donald Trump, who 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 meme coin project $TRUMP. While the investments appear to be focused on brand monetization, the businesses are controversial because they are owned opaquely and linked to foreign investors.
The Senate investigation focuses on several entities linked to Trump's digital asset activities. These entities collectively represent a network of financial and promotional tools that have attracted 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 facilitate influence buying or foreign interference in US politics. Lawmakers fear that, without proper oversight, such companies could violate US ethics laws and potentially allow adversarial entities to gain covert access to a future Trump presidency.
Government ethics rules prohibit federal officials from profiting from their positions or using their brand in ways that could present conflicts of interest. If Trump's cryptocurrency companies are found to be accepting investments from foreign actors or allowing people under legal scrutiny to participate, it could lead to significant legal and political consequences.
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