- Senators want answers on Binance oversight and possible talks about a pardon for former CEO Changpeng Zhao.
- Lawmakers raised concerns about Trump-linked stablecoin investment tied to Binance and the BNB Chain.
- Senate Democrats blocked a stablecoin bill as fears grew over Trump’s influence in the crypto industry.
Democratic senators are ramping up pressure on federal agencies to investigate Binance’s possible links to former President Donald Trump. On May 9, six senators wrote to Treasury Secretary Scott Bessent and Attorney General Pam Bondi. They demanded details about how the Trump administration handled Binance’s regulatory oversight.
The request follows news of a $2 billion planned investment in Binance by MGX, a firm based in Abu Dhabi. The funding would use the USD1 stablecoin, issued by World Liberty Financial. WLFI is reportedly connected to the Trump family. Senators asked the agencies to respond by May 21.
Concerns Over Binance’s Past Violations and Current Operations
Lawmakers raised concerns due to Binance’s past legal troubles. The exchange confessed to violating anti-money laundering laws and paid more than $4 billion to settle with U.S. regulators. The parties involved in the deal were the Justice department, the Treasury, the Commodity Futures Trading Commission.
As part of that settlement, former Binance CEO Changpeng Zhao agreed to resign. However, senators now want to know if Binance discussed a potential pardon for Zhao with U.S. officials. They also questioned Binance’s exit plan from the U.S. market. Lawmakers requested a clear timeline for this exit.
Scrutiny Over WLFI Stablecoin and the BNB Chain
The senators expressed concern that most of USD1’s stablecoin supply runs on the BNB Chain. Binance oversees this blockchain. They believe this connection raises questions about possible influence over financial systems by political allies.
They also want to know if Binance or WLFI discussed listing USD1 on major exchanges. Lawmakers said these links could weaken federal oversight and pose national security risks. They are questioning whether Binance should continue operating in the U.S. market.
Crypto Influence Becoming a Political Issue
These concerns come as crypto regulation faces delays in Congress. Earlier this week, some House Democrats walked out of a crypto hearing led by Republicans. They said Trump’s increasing influence in the crypto industry was a key issue.
On Thursday, Senate Democrats blocked a stablecoin bill from advancing. They cited lack of readiness. However, some Republicans argued it was a political move to counter Trump’s growing presence in the crypto space.
Recent reports show about 40% of Trump’s wealth may be tied to digital assets. Lawmakers fear he could shape crypto rules to benefit his interests. This development adds new urgency to oversight calls.
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