The leading Senate Democrat on a panel tasked with investigating corruption and mismanagement is scrutinizing U.S. President Donald Trump’s recent cryptocurrency activities, raising concerns about whether these endeavors are part of a broader “pay-to-play scheme” that offers access to the presidency to the highest bidder.
Richard Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations—a body within the Committee on Homeland Security and Government Affairs—has taken decisive action by reaching out to influential figures in the cryptocurrency sector. On Tuesday, Blumenthal sent letters to Bill Zanker of Fight Fight Fight LLC and Zach Witkoff, a co-founder of World Liberty Financial, inquiring about the ownership and investment structure surrounding several Trump-associated businesses, including Fight Fight Fight LLC, CIC Digital LLC (the issuer of Trump’s NFTs), Celebration Cards LLC, and DTTM Operations LLC.
According to the letters, the investigation is a “preliminary inquiry into potential conflicts of interest and violations of the law” related to President Trump’s cryptocurrency ventures and their financial dealings with foreign nationals, foreign governments, and other cryptocurrency firms. A pointed focus is given to entities like World Liberty Financial and the TRUMP memecoin, which have prompted the investigation.
The letters further assert that these businesses might constitute a violation of government ethics requirements, thus prompting a series of questions aimed at the involved companies’ leadership. Key inquiries include how the companies monitor or block investments from foreign governments, the revenue generated by these entities, and whether individuals who face legal scrutiny can engage in these businesses.
In addition, Blumenthal is asking executives to furnish records related to Trump-affiliated cryptocurrency ventures as a part of the inquiry.
Importantly, as Democrats are currently the minority party in the Senate, Blumenthal lacks subpoena power unless supported by his Republican counterpart, Sen. Ron Johnson. As of now, Johnson’s office has not provided comments regarding this matter.
Democrats have increasingly expressed concerns over Trump’s cryptocurrency endeavors in recent days. For instance, Rep. Maxine Waters, chair of the House Financial Services Committee, opted to host a separate hearing—which diverged from a planned joint session—to specifically address these cryptocurrency linkages.
On the broader legislative front, a group of Democratic lawmakers, including Sen. Ruben Gallego, have indicated they would abstain from voting on the Senate’s stablecoin bill, largely stemming from apprehensions tied to Trump’s cryptocurrency associations. This includes notable declarations like Eric Trump’s announcement about the Abu Dhabi-based firm MGX utilizing the Trump-affiliated USD1 stablecoin to facilitate a significant investment into Binance.
Adding to the conversation, Sen. Chris Murphy has introduced legislation aimed at banning the U.S. president and senior government officials from issuing memecoins and other financial instruments, reflecting growing trepidation over potential conflicts of interest and ethical implications within the realm of cryptocurrency.
