Crypto & Fintech

Senators Must Oppose Legislation that Enables Trump Crypto Corruption 

By Patrick Woodall

Now, the drumbeat of Trump’s self-dealing is practically a corruption drumroll. In the latest exposé of the First Family using their clout to boost their personal wealth, the Wall Street Journal detailed how Sheikh Tahnoon bin Zayed Al Nahyan of the United Arab Emirates secretly purchased a 49 percent stake in the Trump family’s World Liberty Financial (WLF). WLF has been the primary crypto platform for the First Family’s corruption and has raked in billions of dollars over the past year. The crypto legislation working its way through the Congress will only lock-in this crypto kleptocracy. 

Spy Sheikh’s WLF investment appears to pave way for advanced AI chip deal

The $500 million UAE deal was signed 4 days before the President took the oath of office when he promised to preserve, protect, and defend the Constitution of the United States. Sheikh Tahoon not only operates the UAE’s largest sovereign wealth fund, he also has the distinction of being the UAE’s national security adviser, earning him the moniker of “Spy Sheikh.” The investment made Tahoon’s fund the largest outside investor in the First Family’s crypto venture, with executives of Tahoon’s AI company serving on WLF’s board. 

The worry is that these kinds of investments into the president’s businesses could be an attempt to curry Trump’s favor in exchange for future benefits. It certainly creates the perception that the well-heeled and well-connected are trying to buy executive favors — and the perception that Trump is selling. A few months after the deal, the Trump administration approved the annual export of 500,000 Nvidia AI chips, a sharp departure from prior national security export control rules for advanced AI chips. President Trump himself announced the deal while visiting Abu Dhabi. 

Unanimous rejection of crypto giveaway foreshadowed new corruption allegations

Details of this secret deal between the Spy Sheikh and the First Family broke shortly after Senate Democrats in the Agriculture Committee stood unified in rejecting crypto market structure legislation because it failed to address serious concerns, including ethics and corruption concerns involving the president’s sprawling crypto empire.

Ranking Member Amy Klobuchar (MN) detailed the gaps within the bill that fail to address ethics issues as one of the necessary problems requiring resolution before being able to support crypto legislation. Her views were echoed by Senators Cory Booker (NJ), Adam Schiff (CA), and Elissa Slotkin (MI) during their opening remarks. As Senator Booker put it “This is ridiculous that the President of the United States and his family have made billions of dollars off of this industry and are still trying to create a framework here without the kind of ethics that would prevent this kind of gross corruption in our country that would undermine our nation’s democracy.” Senator Michael Bennet (CO) offered an amendment that would bar elected officials, including the President and his family, from issuing or endorsing cryptocurrency while serving. This amendment was rejected along party lines.  

Another related issue raised during the Committee vote were concerns about the national security risks and threats posed by cryptocurrency. Senators Ben Ray Lujan (NM) and Slotkin specifically raised these issues in their remarks. Notably, Senator Slotkin had previously issued a letter calling for an investigation into potential conflicts of interest by David Sacks, President Trump’s White House AI and Crypto Czar, and Steve Witkoff, United States Special Envoy to the Middle East. The recent revelations of the Spy Sheikh’s monetary ties and WLF stake, which included $31 million to entities with ties to the family of Steve Witkoff, the Trump appointed U.S. envoy to the Middle East, raise further questions about conflicts of interest and national security. Senators should continue to demand clear and binding language in the legislation to address the concerns around national security conflicts and corruption risks. 

Senate leadership, crypto industry, and White House stonewall legitimate ethical concerns

The public and Senate Democrats have been pushing for strong crypto ethics and corruption legislative language for months. So far, Republicans have resoundingly rejected any anti-corruption measures in the bill, with Agriculture Committee Chair John Boozman (AR) pushing a partisan bill forward rather than working across the aisle to craft necessary protections and guardrails. 

A dozen Senators, many of whom sit on the Banking and Agriculture Committees with crypto jurisdiction, have led the negotiations on this far reaching crypto legislation for the Democratic caucus. They have clearly stated the legislation needs to prevent and bar corruption, along with several other critical protections and guardrails to protect investors, prevent money laundering, and bolster financial stability. They must continue to raise these concerns as negotiations continue around this legislation. 

In light of the monetary ties and the cozy relationship between the Spy Sheikh and President Trump, it is even more imperative that Senators make clear the United States is not for sale to the highest crypto bidder. Senators must reject any crypto legislation that fails to ban crypto corruption by the President, his family, and his cronies.