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Two US senators are demanding a federal investigation into a reported $500 million stake acquired by a UAE-backed entity in World Liberty Financial, a crypto venture tied to President Donald Trump, warning the deal may pose national security risks that require formal review by the Committee on Foreign Investment in the United States.
The request, made in February 2026, asks the U.S. Treasury Department to examine whether the foreign stake poses national security risks and whether regulators should intervene.
The inquiry centers on a reported 49% ownership stake acquired through a UAE-backed entity shortly before Trump began his second presidential term in 2025.
Lawmakers argue the timing, foreign involvement, and the project’s connection to a sitting president’s business interests raise serious concerns about data security, regulatory oversight, and potential conflicts of interest.
The request was submitted by Senators Elizabeth Warren and Andy Kim, both members of the Senate Banking Committee.
Both urged Treasury Secretary Scott Bessent to determine whether the Committee on Foreign Investment in the United States (CFIUS) should formally review the deal.
According to congressional letters, the investment allegedly originated from a UAE-linked firm connected to G42, a technology company previously scrutinized by U.S. intelligence agencies over potential ties to China.
Lawmakers worry the arrangement could allow foreign actors indirect access to sensitive financial infrastructure or user data tied to the crypto platform.
“The Committee on Foreign Investment in the United States exists to evaluate precisely these kinds of risks.”
The senators wrote in their request, asking whether the Treasury had already reviewed the transaction or made recommendations to the president.
Reuters reported that the senators specifically cited fears that foreign ownership in a politically connected crypto firm could expose critical technology or personal financial information to overseas influence.
In a statement reported by multiple outlets, lawmakers talked about the urgency of oversight.
“Foreign investments tied to politically exposed entities require careful scrutiny to ensure U.S. national security is protected.” Senate Banking Committee lawmakers, in correspondence to the Treasury Department.
The Treasury Department has not publicly confirmed whether a formal CFIUS investigation has begun.
World Liberty Financial emerged shortly before the 2024 U.S. presidential election as a decentralized finance (DeFi) project backed by Trump and business partners, including investor Steve Witkoff.
The platform launched digital assets including the USD1 stablecoin, designed to maintain parity with the U.S. dollar.
Financial disclosures show Trump earned tens of millions of dollars from the venture, making it one of his largest recent income sources.
Supporters describe the project as part of a broader push to position the United States as a global crypto leader.
Critics, however, argue the overlap between public office and private crypto ventures presents unprecedented ethical challenges.
White House representatives previously defended Trump’s business interests, stating he complies with conflict-of-interest rules and maintains separation from direct management decisions, according to reporting by Forbes.
Still, ethics experts say crypto projects introduce new complexities because blockchain platforms can involve global investors, cross-border payments, and opaque ownership structures.
The Senate request follows broader congressional scrutiny into foreign investments tied to Trump-associated crypto projects.
Separate lawmakers have already called for Securities and Exchange Commission oversight involving major investors connected to World Liberty Financial.
One congressional letter warned that large token holders could destabilize markets if they suddenly liquidate assets.
“Should major investors sell their token holdings, the price could collapse, and everyday investors could lose their savings.” U.S. lawmakers said in a letter to the SEC regarding World Liberty Financial oversight.
Additional criticism has focused on the timing of the UAE deal, reportedly finalized days before Trump’s inauguration.
Senator Chris Murphy publicly questioned whether financial benefits tied to the agreement overlapped with U.S. foreign policy decisions.
The unfolding probe could set a precedent for how politically connected crypto projects are regulated in the United States.
If CFIUS launches a full investigation, it would signal that crypto firms like traditional technology or infrastructure companies, may face stricter scrutiny when foreign capital intersects with national security considerations.
Analysts note the case could influence future stablecoin regulation, disclosure requirements, and rules governing political figures’ involvement in digital asset markets.
