Two Democratic lawmakers from the Senate Banking Committee and the Senate Agriculture Committee are poised to oppose a critical market structure bill unless an inquiry is conducted into the activities of two officials within the Trump administration. Senators Elizabeth Warren and Elissa Slotkin have called for an investigation into David Sacks, who serves as the AI and crypto czar, and Steve Witkoff, the Special Envoy to the Middle East.
In a letter addressed to officials in key government departments—including the State Department, Commerce Department, and the Department of Ethics—the senators assert that without an investigation, they cannot back the proposed legislation concerning the digital asset market structure currently under consideration in the Senate.
The impetus for this demand appears to stem from a September 15 report by The New York Times, which detailed a substantial $2 billion deal between MGX, an investment firm based in Abu Dhabi, and Binance, a prominent cryptocurrency exchange. This agreement, announced earlier in the year, involved the use of USD1 stablecoin, linked to the Trump family’s cryptocurrency enterprise, World Liberty Financial. Reportedly, Sacks and Witkoff were instrumental in facilitating this deal by providing the UAE with access to essential AI technology.
In their letter, the senators highlight the unprecedented level of conflicts of interest presented by the two officials and emphasize the grave implications these may have on U.S. national security. “In the history of our country’s foreign policy, one is hard-pressed to find two senior officials with such significant conflicts of interest involved in decisions regarding national security,” they stated, urging for a comprehensive evaluation of the allegations. They further noted that understanding these issues is vital as Congress debates legislation aimed at establishing a robust framework for digital assets, while ensuring that corruption linked to cryptocurrency does not jeopardize national security.
Warren, who serves as the ranking member of the Senate Banking Committee, and Slotkin, a member of the Senate Agriculture Committee, could play pivotal roles in swaying the outcome of the vote on this bill. Their stance appears to mirror the concerns of a group of 12 Democrats who recently expressed their willingness to collaborate with Republicans on market structure legislation, contingent upon assurances regarding anti-corruption measures.
While Warren has previously indicated her support for regulations around digital assets, she has also made it clear that she does not endorse any proposals that seem to have been crafted with input from the cryptocurrency industry itself.
The market structure bill was initially passed in the House of Representatives amid some obstacles, mainly due to Republican worries over central bank digital currencies (CBDCs). Nevertheless, in July, it progressed through the chamber alongside the GENIUS stablecoin bill and the Anti-CBDC Surveillance Act, ultimately receiving bipartisan approval, with 78 Democrats voting in favor.
In the Senate, the legislation has encountered its share of hurdles despite the backing of notable proponents like Senator Cynthia Lummis from Wyoming, who aimed to have the bill out of committee by the end of August. However, as of now, no vote has been scheduled.
Discussions are reportedly ongoing between Republicans and Democrats regarding the Senate version of the bill, titled the Responsible Financial Innovation Act, with hopes that it could be signed into law by 2026. The White House has been approached for a statement on the matter but had not responded at the time.
