Why Are Lawmakers Calling for a National Security Review?
Two Democratic senators are urging Treasury Secretary Scott Bessent to determine whether a reported $500 million investment by a UAE government-linked entity in crypto firm World Liberty Financial should undergo a national security review.
Sens. Elizabeth Warren and Andy Kim, both members of the Senate Banking Committee, sent a letter asking whether the Committee on Foreign Investment in the United States (CFIUS) should examine the transaction. They gave Bessent until March 5 to respond and asked whether the committee had already reviewed the deal or issued recommendations to President Donald Trump.
CFIUS, chaired by the Treasury Department, has the authority to review foreign investments that could give overseas actors access to sensitive technologies or personal data. In their letter, the senators argued that World Liberty Financial’s operations may fall within that scope.
Investor Takeaway
What Is the Reported UAE Investment?
The Wall Street Journal reported that G42, a company backed by Sheikh Tahnoon bin Zayed Al Nahyan, acquired a 49% stake in World Liberty Financial days before Trump’s second inauguration in January 2025. The investment was reportedly structured through an entity called Aryam Investment 1 and signed by Eric Trump.
According to the Journal, $250 million was paid upfront, with $187 million directed to Trump family entities and at least $31 million to entities affiliated with the family of Steve Witkoff, Trump’s special envoy to the Middle East and a co-founder of World Liberty Financial. Trump has denied knowledge of the investment.
Warren and Kim raised concerns about whether the deal could give a foreign government access to user data collected by the company. They also cited longstanding intelligence warnings regarding G42’s past ties to Chinese firms, including Huawei and Beijing Genomics Institute. G42 has said it divested from Chinese companies in early 2024.
How Does This Fit Into Broader Congressional Scrutiny?
The Senate letter follows a separate House probe launched by Rep. Ro Khanna, ranking member of the House Select Committee on Strategic Competition with China. Khanna requested documents from World Liberty co-founder Zach Witkoff and asked whether the UAE investment may have intersected with U.S. export policy on advanced AI chips.
That inquiry came after the Trump administration approved a plan to provide the UAE access to up to 500,000 advanced AI chips per year. Khanna’s review is focused on whether foreign investment in a Trump-linked firm could overlap with strategic technology decisions.
Treasury Secretary Bessent has already faced questions about World Liberty Financial during a House Financial Services Committee hearing. Rep. Gregory Meeks asked him to pause a pending national trust bank charter application tied to the firm. The Office of the Comptroller of the Currency has declined Warren’s earlier request to delay its review of that application.
Investor Takeaway
What Is at Stake for World Liberty Financial?
World Liberty Financial operates the USD1 stablecoin, which has grown to more than $5 billion in circulating supply since its March 2025 launch. The company lists Trump and Witkoff as co-founders emeritus and is run by members of both families. It is also developing a foreign exchange remittance platform and plans to host a World Liberty Forum at Mar-a-Lago on Feb. 18.
A spokesperson for the firm has previously said that neither Trump nor Witkoff had any involvement in the UAE transaction.
Whether CFIUS formally reviews the reported investment will depend on Treasury’s response and the structure of the deal. A review could examine governance rights, data access, and any influence over strategic operations. Even without a formal block, the scrutiny adds a layer of uncertainty around one of the largest stablecoin issuers tied to politically connected founders.
