Senate Democrats Question Trump’s Special Envoy About Crypto Holdings In New Letter

In a latest letter, a number of Senate Democrats have raised considerations a few potential breach of federal ethics legal guidelines because of the US Special Envoy to the Middle East’s failure to divest from his crypto asset holdings.

US Senators Question Witkoff’s Crypto Holdings

On Wednesday, eight Senate Democrats, led by Senator Adam Schiff, questioned the US Special Envoy for peace missions, Steve Witkoff, about his digital asset possession and his hyperlinks to the Trump Family crypto ventures.

In a letter shared by Fortune, the US lawmakers raised considerations a few potential battle of curiosity as Witkoff’s newest monetary disclosure confirmed that he has but to divest from a few of his crypto holdings, together with an possession stake in World Liberty Financial (WLF) and the corporate’s WLFI token. Notably, the US Special Envoy is one among WLFI’s co-founders alongside his son, Zach Witkoff, and members of the Trump Family.

“As lengthy as you keep possession of those property, you stand to revenue from any selections you might be concerned with whereas serving within the Administration. Moreover, the general public has ample motive to be involved that your decision-making can also be influenced by your shut private and enterprise ties to the Trump Organization,” the letter learn.

The Senators famous that one among WLF’s co-founders, Zak Folkman, beforehand affirmed that by May 23, 2025, Witkoff had “no operational function, no monetary curiosity in WLFI offers, and no affect on day-to-day selections.” Folkman additionally added that Witkoff was “within the means of totally divesting from WLFI,” which had not occurred on the time of the discharge of White House monetary report in August.

To the lawmakers, this underscores the “troubling entanglement” between the US Special Envoy’s official duties and his personal monetary curiosity tied to the Trump household companies, highlighting World Liberty Financial’s $2 billion cope with a United Arab Emirates (UAE) agency involving the corporate’s stablecoin USD1.

As reported by Bitcoinist, earlier Wall Street Journal (WSJ) protection raised related considerations concerning the “extraordinary blurring of presidency negotiations and personal enterprise dealings,” claiming that it’s “rewriting the diplomatic playbook for some overseas nations trying to achieve traction with the brand new Trump administration.”

In May, the WSJ claimed that father-and-son duo Steve and Zach Witkoff have doubtlessly helped blur the traces of personal enterprise and public duties of the present administration, highlighting World Liberty Financial’s deal to allow MGX’s $2 billion funding.

The report additionally famous a earlier article that claimed the elder Witkoff was allegedly concerned within the talks between the Trump household and Binance. Nonetheless, these talks have been denied by Binance’s co-founder and former CEO Changpeng “CZ” Zhao.

Ethical Compliance Inquiries Mount

“Your failure to divest your possession in these property raises critical questions on your compliance with federal ethics legal guidelines and, extra importantly, potential to serve the American individuals over your personal monetary pursuits,” the lawmakers said.

In the letter, the Senate Democrats requested Witkoff to answer a number of requests by October 31, 2025. Among the questions, they inquired in regards to the standing of his monetary curiosity within the Trump-linked crypto firm.

Additionally, they requested the US particular Envoy if he had obtained a written waiver that exempts him from penalties and permits him to take part in key discussions with the UAE whereas proudly owning a stake in WLFI.

If a waiver has not been granted, additionally they requested an evidence of how Witkoff’s monetary holdings don’t violate federal ethics legal guidelines and laws, which prohibit authorities officers from collaborating in ventures that would profit them or their family.

It’s value noting that Witkoff is one among a number of US officers who’ve been questioned about their very own holdings or the US President’s crypto ventures. In July, Senate Democrats pressed the brand new head of the Office of the Comptroller of the Currency (OCC) a few potential battle of curiosity associated to the Trump household’s stablecoin, USD1.

Earlier this yr, two senators raised related considerations in a letter to former performing chairman of the Securities and Exchange Commission (SEC), Mark Uyeda. Meanwhile, Democratic lawmakers proposed the Curbing Officials’ Income and Nondisclosure (COIN) Act to forestall crypto-related conflicts of curiosity 4 months in the past.

A latest investigation highlighted that, in contrast to most of his predecessors, President Trump has not put his crypto ventures in a belief managed by an impartial occasion. However, the White House has denied any potential battle of curiosity between the President’s companies and his official duties.