Democratic Senators Elizabeth Warren and Andy Kim have asked the U.S. Treasury Department and the Committee on Foreign Investment in the United States (CFIUS) to review a reported $500 million foreign investment in World Liberty Financial, a cryptocurrency firm linked to President Donald Trump and businessman Steve Witkoff, over potential national security risks involving digital finance, stablecoin USD1, and exposure to U.S. Treasury securities (UST) and broader crypto markets (BTC-USD, ETH-USD).
Senators Elizabeth Warren and Andy Kim sent a letter to Treasury Secretary Scott Bessent, who leads the Committee on Foreign Investment in the United States, known as CFIUS. They asked whether a reported $500 million investment giving a foreign buyer a 49% ownership stake in the company requires a CFIUS review.
The senators also asked whether CFIUS has already reviewed the transaction or provided any recommendations to President Donald Trump regarding the deal. They requested a response by March 5.
At the time the letter became public, the Treasury Department had not issued a comment.
Concerns raised over data access and national security
The lawmakers said the reported transaction raises serious national security concerns. Their concerns focus on the size of the foreign stake, the involvement of a foreign government-linked investor, and the nature of the company’s business.
The company involved is World Liberty Financial, a cryptocurrency firm founded two months before the November 2024 presidential election. The company is run by members of the Trump and Witkoff families. President Donald Trump and businessman Steve Witkoff are listed as co-founders emeritus.
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World Liberty Financial operates in the digital finance sector and is behind a stablecoin called USD1. The stablecoin is pegged to the U.S. dollar and backed by short-term U.S. government Treasury securities, U.S. dollar deposits, and other cash equivalents.
The senators noted that companies in the cryptocurrency and digital finance space often collect sensitive personal information. This can include user identity details, financial records, and transaction data. They raised concerns that a large foreign ownership stake could allow foreign governments to access or influence such information.
In their letter, the senators stated that CFIUS has a clear mandate to address risks created by foreign investments. This includes transactions that may allow foreign governments to gain access to critical technology or sensitive personal data of U.S. citizens.
They specifically questioned whether the reported deal could allow the United Arab Emirates or China to access sensitive personal information collected by World Liberty Financial.
CFIUS is a Treasury-led interagency committee that includes senior officials from the Defense, State, Commerce, Homeland Security, and Justice departments. Its role is to evaluate foreign investments for potential national security risks and to take action when necessary.
Foreign investor background and timing of the reported deal
The reported investment involves a 49% stake in World Liberty Financial purchased by G42, a technology company backed by Sheikh Tahnoon bin Zayed Al Nahyan. He serves as the national security adviser of the United Arab Emirates, manages the country’s largest wealth fund, and is a member of the UAE royal family.
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The senators pointed out that U.S. intelligence agencies have long warned that G42 may have provided technology that assisted China’s military. These warnings were cited as part of the national security concerns related to the reported investment.
The timing of the transaction was also highlighted. The reported purchase occurred just days before President Donald Trump began his second term in January 2025. Months later, the Trump administration approved the sale of advanced artificial intelligence chips to the United Arab Emirates.
The senators did not claim that the events were directly connected. However, they said the timing raises questions that warrant closer examination.
Trump’s aides have stated that he handed over control of his business ventures and that these ventures are being reviewed by outside ethics lawyers. Despite this, Democratic lawmakers have continued to raise concerns about potential conflicts of interest related to World Liberty Financial.
The senators emphasized that their request seeks a comprehensive and unbiased review to determine whether the reported transaction falls under CFIUS authority.