A group of democratic senators have been reported to have sent a letter to the US Department of Justice and the Treasury Department that expresses concerns about President Donald Trump's relationship with Cryptocurrency Exchange Binance and the potential conflicts of interest in regulating the industry.
According to the May 9 Bloomberg report, the Democratic Senators Question Attorney General Pam Bondi and Treasury Secretary Scott Bescent reported on the steps Binance took as part of November 2023 US requests for US authorities, amid reports that Trump and his family deepened exchange connections.
That settlement saw Binance paying more than $ 4 billion as part of a deal with the Justice Department, Treasury, and Commodity Futures Trading Commission, and then “CZ” Zhao went down.
However, since Trump won the presidency in 2024, many lawmakers have accused the president of corruption from crypto profit while in a position to influence industry laws and regulations.
Trump has launched his own memecoin – earning a millions of dollars at transaction fees – and offers top tokenholders attending an exclusive dinner in Washington, DC. His family supported by the Crypto Venture World Liberty Financial recently announced that an Abu Dhabi firm MGX, will arrange a $ 2 billion investment in Binance using the USD1 Stablecoin of the platform.
“Our concerns about Binance obligations are further forcing recent reports that the company uses the Trump family stablecoin to partner with foreign investment companies,” the senators said in a letter, according to Bloomberg.
Related: Trump cheated on pushing XRP for Crypto Reserve: Report
https://www.youtube.com/watch?v=vkc5qcrvdc0
Stablecoin Bill failed to pass the US Senate
The letter arrived less than 24 hours after some of the same senators blocked an important vote on a bill to repair Stablecoins, named the Genius Act. Senator Elizabeth Warren, who reportedly signed the letter and opposed the Stablecoin Bill, suggested that the Senate should not align with “Facilitat[ing] This kind of corruption ”from Trump.
Bessent Says The Senate was “missed by a chance” by not passing the Stablecoin bill, but did not directly address any of the concerns of Trump's crypto interests. It is unclear if or when the Chamber may consider another vote on the bill.
In a report of April 23, the nonpartisan state of the state of democracy defender of the action Says Excessive 40% of Trump's net value is tied to crypto. The group noted that the Genius Act, in its current version, “is inevitably President Trump to use his executive powers to establish a regulatory environment and implementation agenda that prioritizes his personal enrichment to the broader interest of US stakeholders.”
Amidst Stablecoin concerns and the proposed market structure proposals, Zhao has been reported to have applied for a federal forgiveness from Trump. Although the former CEO has served four months in prison, a forgiveness for his crime charge may allow him to get more involved in the crypto industry through a management position.
Magazine: Crypto adventures of Trump's crypto raises conflict of interest, insider trading questions
