US Senator Elizabeth Warren, one of the more outspoken voices against digital assets in Congress, is seeking answers from Justice Department and Treasury Department officials about a potential investigation into decentralized crypto exchanges, citing concerns about PancakeSwap and Uniswap.
In a letter Monday to Treasury Secretary Scott Bessent and U.S. Attorney Pam Bondi, Warren asked whether their departments “investigated the significant national security risks posed by decentralized cryptocurrency exchanges like PancakeSwap.”
The Massachusetts senator expressed concern about the Trump administration’s “undue political influence” on selective enforcement of crypto companies and money laundering reports linked to North Korea, demanding a response by January 12.
“As Congress considers legislation to structure the crypto market — including rules to prevent terrorists, criminals and rogue states from exploiting decentralized finance (DeFi) to finance their activities — it is critical to understand whether you are seriously investigating these risks,” Warren wrote to Bessent and Bondi, adding:
“The public deserves to know if you are investigating serious risks identified by national security experts and the crypto industry itself.”
Warren’s letter came as the U.S. Senate prepared to wind down before it adjourns for the holidays. Some Republicans on the Banking Committee expected to tackle a digital marketplace structure bill, known as the Responsible Financial Innovation Act, before the end of the year. However, Speaker Tim Scott confirmed on Monday that the debate on the bill’s labeling has been postponed until 2026.
Related: Major US Democrats are signaling a fight over the structure of the crypto market
The Massachusetts senator also expressed concern over reports that PancakeSwap “fueled traders’ interest in using coins issued by the Trump family’s main crypto company, World Liberty Financial.”
Some Senate Democrats have expressed concern about the US president’s potential influence and conflict of interest over the legislation, given his and his family’s ties to the crypto industry.
The XRP attorney who challenged Warren in 2024 will run again
John Deaton, a lawyer running against Warren in the 2024 US election, is making another bid for Congress. Deaton has been an advocate for the owners of XRP (XRP) in court, and has become a prominent figure in the cryptocurrency industry in recent years.
In November, he announced that he would run again as a Republican for the US Senate in 2026. Warren is not up for re-election next year, so Deaton will try to unseat Democratic Sen. Ed Markey.
Magazine: When Privacy Laws and AML Collide: The Impossible Choice of Crypto Projects
About the Author
