As congressional leaders look for more details about how the first family might be attempting to combine profit with official government action, a verbal battle between Senate Democrats and executives at the cryptocurrency company partially owned by President Trump’s family is intensifying, CBS News has learned.
Senate Democrats wanted additional information in a series of courteous but incisive letters regarding a multibillion-dollar deal involving a group of investors, including foreigners, and the Trump family’s cryptocurrency business, World Liberty Financial. The senators also questioned the company on the introduction of a cryptocurrency product known as a “stablecoin,” which is directly backed by US dollars.
In the June 10 letter, Senators Elizabeth Warren of Massachusetts and Jeff Merkley of Oregon state that “the introduction of a stablecoin directly associated with a sitting President who stands to profit financially from the stablecoin’s success is an unprecedented conflict of interest posing significant threats to both our financial system and our democracy.”
As the Senate prepares to vote on the GENIUS Act, which would establish a federal regulatory framework for stablecoins, there is heightened interest in the topic. Pegged to a specific value, usually the US dollar, stablecoins are intended to be less volatile than other cryptocurrency products. Because of this, it is a desirable tool for users who wish to switch between cryptocurrencies more quickly.
Warren and Merkley asked for financial documents pertaining to MGX, an Emirati company, its $2 billion investment in World Liberty, and Binance, one of the biggest cryptocurrency exchanges in the world, which is run by a Singaporean individual.
The letter, which is written to the CEOs of MGX and Binance, requests that these companies maintain correspondence with World Liberty Financial, MGX, Binance executives, the White House, and other federal government organizations in the United States. Additionally, it asks certain people to communicate with one another, such as President Trump, his kids Barron, Eric, and Donald Jr.; World Liberty Financial co-founders Zack and Alex Witkoff; and their father, Steve Witkoff, who is the president’s special envoy to the Middle East.
The senators’ request comes after World Liberty’s attorneys refuted claims that MGX’s $2 billion investment in Binance through World Liberty Financial unfairly favors the Trump family in a letter sent on May 29.
What the Company opposes is the idea that successful financial innovation, particularly that which boosts U.S. competitiveness, should be viewed with suspicion, according to the letter from World Liberty’s attorneys.
Trump family’s business interests in crypto
Over the past six months, the Trump family has made a number of statements about its cryptocurrency business ventures.
In the fall of 2024, the Trumps established World Liberty Financial, a cryptocurrency exchange that claims on its website that Mr. Trump, who is identified as the “chief Crypto Advocate,” “inspired” the venture, while his three kids are identified as “Web3 Ambassadors.”
A few months later, they unveiled the $TRUMP and $MELANIA coins, which are cryptocurrency tokens referred to as “meme coins” and whose value is mostly determined by social media activity. Because of its unpredictable price fluctuations, this kind of cryptocurrency is rarely used in transactions. Soon after debut, $TRUMP reached its highest point at about $75. By April 2025, it had fallen to less than $8 before slightly rising to about $11.
Regardless of the value of the currency, the president’s family has benefited financially from both cryptocurrency endeavors and receives a portion of transaction fees.
An organization connected to Mr. Trump and his family members owns 60% of World Liberty Financial, according to the fine print on the company’s website. Additionally, a Trump family firm called “DT Marks DEFI LLC” owns 22.5 billion of the $WLF tokens and receives an extra 75% of the net earnings from subsequent token purchases, according to the company’s public disclosures.
The president threw a lavish dinner for the top holders of his $TRUMP coin on May 23. The guests paid an average of $1 million each to meet Mr. Trump at his golf property in Virginia. According to data from analytics company Chainalysis, organizations associated with Mr. Trump and other supporters received over $300 million in $TRUMP coin transaction fees prior to the dinner.
World Liberty Financial introduced “USD1,” a new stablecoin product backed by US Treasuries and cash equivalents, in April. In order to finance a contract with Binance, MGX committed to buy $2 billion worth of this currency.
“Why — beyond the obvious benefit of gaining favor, directly or indirectly, with the Trump Administration — did you select USD1, a newly-launched, untested cryptocurrency with a no track record?” The letter from Senators Warren and Merkley to the CEOs of MGX and Binance makes this request.
According to World Liberty Financial, stablecoins, such as their USD1 product, support the dollar’s strength.
[USD1] is a stablecoin that is intended to help modernize access to the U.S. dollar around the world and to strengthen American monetary leadership by maintaining the U.S. dollar’s position as the world’s reserve currency during a period when closed financial systems and competing currencies are gaining ground, the company stated in its letter dated May 29.
According to the company’s letter, a foreign currency, most likely UAE dirhams, would have been used to settle the MGX deal if it hadn’t been completed in USD 1. Rather, it contends that maintaining transactions in USD1 increases demand for the currency.
According to the letter, the capital would have migrated offshore and completely left the U.S. banking system if USD1 hadn’t been present.
Warren and Merkley, however, believe the agreement calls into question possible attempts to do favor with the president’s family.
The GENIUS Act will be put to a vote in the Senate today. If it is approved, the federal government will have the authority to grant licenses to stablecoin issuers and mandate that their products be backed by US dollars or other financial equivalents.
The bill’s backers argue that now is the right time to impose federal regulation on a growingly common investment instrument.
Warren and other opponents, however, claim that the bill falls short in enhancing control of a sector that directly benefits the president’s family.
A bill that boosts the stablecoin market while facilitating the President’s corruption and jeopardizing national security, financial stability, and consumer protection is worse than no bill at all. She mentioned this during a Senate floor discussion on May 19.
In May, Senate Democrats sought for an amendment that would specifically prohibit a sitting president and his family from profiting from stablecoin products. Ultimately, this amendment was not included, and the law passed with 66 votes in favor and 22 votes against, with 16 Democrats joining Republicans in support.
