Elizabeth Warren Presses DOJ, Treasury on Potential Probe of DeFi Exchanges
US Senator Elizabeth Warren is looking for solutions from federal legislation enforcement and monetary authorities over whether or not decentralized cryptocurrency exchanges are below lively investigation.
Key Takeaways:
- Warren is asking whether or not US authorities are investigating DeFi exchanges over nationwide safety dangers.
- She warns DeFi might allow illicit finance as crypto laws stalls in Congress.
- The letter raises issues about political affect and Trump-linked crypto exercise.
In a letter sent Monday to Treasury Secretary Scott Bessent and US Attorney General Pam Bondi, the Massachusetts Democrat requested whether or not their departments have been “investigating vital nationwide safety dangers posed by decentralized cryptocurrency exchanges like PancakeSwap.”
Warren requested a response by Jan. 12, framing the inquiry as half of broader congressional debates over crypto regulation.
Warren Warns DeFi Could Be Exploited for Illicit Finance Without Oversight
Warren stated the general public deserves readability as Congress weighs crypto market construction laws, together with measures aimed toward stopping illicit finance.
She pointed to issues raised by nationwide safety specialists and the crypto business itself, warning that decentralized finance might be exploited by terrorists, criminals and sanctioned states if left unchecked.
The senator additionally questioned whether or not political issues have been influencing how crypto-related instances are enforced, citing what she described as selective motion below the Trump administration.
Her letter referenced reviews linking crypto exercise to North Korea’s cash laundering efforts and flagged claims that enforcement priorities is probably not utilized evenly throughout the sector.
Warren’s intervention comes as legislative momentum round crypto regulation slows in Washington.
Lawmakers had anticipated the Senate Banking Committee to advance the Responsible Financial Innovation Act, a key digital asset market construction invoice, earlier than the tip of the 12 months.
However, committee chair Tim Scott confirmed Monday {that a} markup listening to on the laws has been delayed till 2026.
The letter additionally highlighted reviews alleging that PancakeSwap had been selling tokens tied to World Liberty Financial, a crypto firm linked to the Trump household.
Warren stated such exercise raised questions on conflicts of curiosity and the president’s potential affect over crypto coverage, issues echoed by different Senate Democrats.
The renewed focus on Warren’s crypto stance comes as political dynamics shift forward of the subsequent election cycle.
John Deaton, a lawyer identified for representing XRP holders in authorized battles with regulators, introduced in November that he will run as a Republican for the US Senate in 2026.
Deaton previously challenged Warren within the 2024 election and has emerged as a vocal critic of her strategy to digital asset regulation.
Warren, Reed Urge DOJ and Treasury to Probe Trump-Linked Crypto Firm
Last month, Warren and Jack Reed also called on the DOJ and the US Treasury to analyze World Liberty Financial, a crypto firm linked to the Trump household, over alleged connections to illicit actors in North Korea and Russia.
The senators cited a September 2025 report from watchdog group Accountable.US, which claimed the agency offered tokens to consumers with ties to cash laundering platforms, an Iranian crypto change and North Korean hackers.
World Liberty Financial has denied any wrongdoing or conflicts of curiosity in response to the allegations.
World Liberty Financial lists President Donald Trump as a “co-founder emeritus,” together with his sons Donald Jr. and Eric serving as Web3 ambassadors and Barron Trump as a DeFi visionary.
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