Warren Signals Broad January Crypto Probe, Taking Aim at Trump Family Business
Sen. Elizabeth Warren is preparing a sweeping investigation into the cryptocurrency industry as the new Congress convenes in January, with the Trump family’s digital-asset businesses, a bank charter approval process and alleged insider trading in prediction markets among the main targets.Bitcoin.com reported on Nov. 11 that Warren has begun preparing the inquiries ahead of an anticipated January start as Senate Banking Committee chair. Democrats won majorities in both the House and Senate in the Nov. 3 midterm elections, strengthening their hand to intensify congressional oversight of the administration and the financial industry.“The crypto industry has had 18 years to show positive use cases,” Warren said in an interview on Nov. 10. A Senate Banking Committee aide added that Big Tech chief executives, administration officials, the Trump family’s crypto businesses, Wall Street executives and major corporations should preserve documents and be ready to answer tough questions.At the center of the probe are World Liberty Financial, or WLFI, and the dollar-pegged stablecoin USD1, both linked to the Trump family. Warren also plans to examine the national trust bank charter that the Office of the Comptroller of the Currency conditionally approved in August. The review is expected to focus on whether the process was handled properly and whether Trump associates and foreign investors had conflicts of interest.The use of inside information in prediction markets is also part of the inquiry. Warren and Sen. Jeff Merkley demanded an explanation over a former White House teleprompter operator who allegedly bet on Kalshi after learning in advance the contents of a presidential speech. The Commodity Futures Trading Commission imposed a $173,539 civil penalty and a three-year trading ban in the case. The two senators also asked the White House to respond by Nov. 23 on financial and advisory ties between Donald Trump Jr. and prediction-market companies.Even so, a broader congressional investigation would not automatically translate into passage of regulatory legislation. Ending a filibuster on major Senate bills typically requires 60 votes, and overriding a presidential veto requires a two-thirds majority in both chambers. Democrats are also split on issues including stablecoin compensation, suggesting oversight efforts such as hearings and document demands may gather pace before any statutory revisions.