Senators Warren and Kim ask Treasury to review $500 million UAE investment in Trump-linked crypto firm WLFI for national security risks.
Two Senate Democrats are seeking a federal review of a reported $500 million investment in a Trump-linked crypto company, World Liberty Financial (WLFI). Senators Elizabeth Warren and Andy Kim asked Treasury Secretary Scott Bessent to get to work on determining whether a CFIUS investigation is necessary. The lawmakers cited possible national security concerns. They demanded a proper and unbiased evaluation of the transaction.
Senators Highlight National Security Concerns Over UAE Crypto Investment
The investment reportedly gave a UAE-linked entity a 49% stake in World Liberty Financial, which makes it the largest outside shareholder. The UAE’s National Security Advisor, Sheikh Tahnoon bin Zayed Al Nahyan, supported the deal. Two board seats went to executives also linked to Sheikh Tahnoon’s company G42, which was flagged by U.S. intelligence as having possible links to China’s military technology.
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Senators said the transaction took place just four days before President Trump’s inauguration in January of 2025. Critics raised concerns about a conflict of interest because the Trump administration later approved exports of artificial intelligence chips to the UAE.
Lawmakers stressed that the risk of foreign influence and data privacy concerns might come with such deals. They cautioned that sensitive information of U.S. citizens may be at risk of exposure if proper safeguards are not put in place.
The senators asked Secretary Bessent in writing to confirm whether or not CFIUS should examine the deal. They also requested a complete review should there be any need for this. A response was solicited by March 5th, 2026, including information about whether any recommendations were previously submitted to President Trump. This inquiry reflects the growing congressional concern for foreign investments in politically exposed companies.
Lawmakers Stress Oversight to Protect U.S. Interests
World Liberty Financial operates a USD1 stablecoin pegged to the U.S. Dollar, backed by US Treasuries. The senators contended that foreign ownership of almost half the company could have an impact on operations. They emphasized the need to consider financial and technology risks. Additionally, oversight is a means for ensuring that national security and U.S. citizen data are kept safe.
The involvement of the UAE, through G42, is elevated due to scrutiny over previous intelligence reports. These reports suggested that G42 worked with Chinese engineers on messaging technology. Such involvement might involve indirect risks to U.S. interests. Senators advocated proactive steps to guard against possible exploitation of sensitive crypto infrastructure by foreign entities.
The Treasury Department has yet to comment on the letter from the senators. Observers expect the CFIUS review to take months. This process will determine whether there will be restrictions or other conditions on the investment. Lawmakers stressed the importance of the review because it guarantees transparency and the public’s trust.
If CFIUS decides that it needs to conduct a formal investigation, it could set a precedent for future foreign crypto investments. The congressional scrutiny of the cryptocurrency deals is growing because of concerns about national security and data. Early review and regulation may help avoid larger risks to US financial and technological systems in the future.
