US Senator Elizabeth Warren (D-Mass.) On Monday, pressure increased on DeFi linked to the president Donald Trumpdemanding a national security investigation just as Senate negotiations on a crypto market structure bill moved forward in January.
Warren seeks to investigate DeFi activity linked to Trump
Warren, the top Democrat on the Senate Banking Committee, has asked federal officials to investigate decentralized finance platforms.
She said these platforms could amplify tokens connected to World Liberty Financial Inc. (CRYPTO: WLFI), a Trump-linked company, according to CoinDesk.
In a letter sent Monday to the Treasury Secretary Scott Bessent and attorney general Pam BondiWarren raised concerns about Pancake swap (CRYPTO: CAKE)a decentralized exchange that operates on multiple blockchains and plays a major role in the Binance market. BNB Channel (CRYPTO: BNB).
She asked whether the administration was looking at “any inappropriate political influence” on enforcement decisions related to DeFi activity.
This echoes a similar request she backed last month involving World Liberty Financial.
Crypto Market Structure Bill Slides Until January
Warren’s new push comes as discussions in the Senate over a long-awaited crypto market structure bill continue to drag on.
Chairman of the Senate Banking Committee Tim Scott (R-SC) said the legislation would now be considered in January after negotiators failed to reach an agreement before the end of the year.
While Warren has been one of the bill’s most vocal critics, a bloc of Democrats have continued to negotiate with Republicans, sidelining her influence in the process.
DeFi regulation remains one of the most controversial unresolved issues, with industry sources describing it as a potential deal-breaker.
Also Read: Tim Scott Highlights ‘Real Progress’ on Crypto Bill After Democrats Question Elected Officials’ Stable Yields and Digital Asset Activities
DeFi rules emerge as central fault line
Warren criticized DeFi platforms that process hundreds of millions of dollars in daily transactions without requiring user identification.
She called these structures national security risks, especially as Congress debates rules to prevent illicit financing.
Democrats have also pushed to prevent top government officials from maintaining business interests in the cryptocurrency sector – another sticking point that has drawn resistance from the White House.
White House pushback cloud talks
Trump administration officials have repeatedly rejected claims that the president’s crypto ties presented conflicts of interest.
The White House has already rejected initial proposals to limit such ties, complicating efforts to reach a bipartisan agreement.
If negotiations extend too far into the new year, the bill could collide with looming budget deadlines around Jan. 30, increasing the risk of more significant legislative delays, similar to previous government shutdowns.
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