Key Notes
- In his letter, Ro Khanna cited potential conflicts of interest and national security implications in the World Liberty Financial deal.
- Reports allege a UAE-linked entity acquired a 49% stake in WLFI, with the native USD1 stablecoin used in a $2 billion transaction involving Binance.
- The controversy has pushed Democrats to demand ethics safeguards in the crypto market structure bill.
World Liberty Financial, the crypto venture of the Trump family, is now facing a House probe over the reported $500 million deal with an Abu Dhabi-linked entity. The probe also involves World Liberty Financial’s dollar-pegged USD1 stablecoin. As part of the deal, the entity has reportedly acquired 49% in Trump’s crypto venture.
US House Launches Probe into World Liberty Financial
Rep. Ro Khanna of the House Select Committee has sent a formal letter to World Liberty Financial (WLFI) seeking detailed information on its reported deal with the United Arab Emirates.
Khanna requested records of payments and communications related to the transaction. Besides, he also cited concerns over potential conflicts of interest and national security issues tied to US export controls on advanced AI chips.
The inquiry also extends to WLFI’s reported use of USD1 stablecoin in a $2 billion transaction involving crypto exchange Binance. This probe comes following a Wall Street Journal report alleging that WLFI struck a separate, undisclosed $500 million agreement to acquire an equity stake in the exchange.
In his letter, Khanna asked whether $187 million from the UAE deal was directed to businesses linked to the Trump family. Moreover, he also questioned whether additional payments were made to affiliates of WLFI’s co-founders.
When questioned about this UAE deal, US President Donald Trump denied the allegations. He said:
“I don’t know about it. I know that crypto is a big thing. My sons are handling that. My family is handling it, and I guess they get investments from different people.”
Democrats to Have an Ethics Test Before Crypto Bill
Following the Abu Dhabi deal with World Liberty Financial, Democrats are seeking to push efforts for stricter ethics provisions in the crypto market structure bill. Republicans have been voting with support from Democrats. Speaking on it, Sen. Cory Booker of New Jersey, who is considered a pro-crypto Democrat, said:
“It has created more of a sense of moral urgency for us to have ethics as part of this. The Trump administration has demonstrated the grossest, most egregious corruption from the White House we have ever seen.”
This confrontation between the Democrats and Republicans will test the bipartisan dealmaking between the two parties. Although both Republicans and Democrats have signaled a willingness to move the bill forward, it will be interesting to see whether Trump’s crypto deals cast a shadow over it.
