US Senator Elizabeth Warren is in search of solutions from federal legislation enforcement and monetary authorities over whether or not decentralized cryptocurrency exchanges are below energetic investigation.

Key Takeaways:

• Warren is asking whether or not US authorities are investigating DeFi exchanges over nationwide safety dangers.
• She warns DeFi may allow illicit finance as crypto laws stalls in Congress.
• The letter raises considerations about political affect and Trump-linked crypto exercise.

In a letter despatched Monday to Treasury Secretary Scott Bessent and US Lawyer Basic Pam Bondi, the Massachusetts Democrat requested whether or not their departments have been “investigating vital nationwide safety dangers posed by decentralized cryptocurrency exchanges like PancakeSwap.”

Warren requested a response by Jan. 12, framing the inquiry as a part of broader congressional debates over crypto regulation.

Warren Warns DeFi Might Be Exploited for Illicit Finance With out Oversight

Warren mentioned the general public deserves readability as Congress weighs crypto market construction laws, together with measures geared toward stopping illicit finance.

She pointed to considerations raised by nationwide safety consultants and the crypto trade itself, warning that decentralized finance could possibly be exploited by terrorists, criminals and sanctioned states if left unchecked.

The senator additionally questioned whether or not political issues have been influencing how crypto-related instances are enforced, citing what she described as selective motion below the Trump administration.

Her letter referenced experiences linking crypto exercise to North Korea’s cash laundering efforts and flagged claims that enforcement priorities might not be utilized evenly throughout the sector.

Warren’s intervention comes as legislative momentum round crypto regulation slows in Washington.

Lawmakers had anticipated the Senate Banking Committee to advance the Accountable Monetary Innovation Act, a key digital asset market construction invoice, earlier than the tip of the 12 months.

Nonetheless, committee chair Tim Scott confirmed Monday {that a} markup listening to on the laws has been delayed till 2026.

The letter additionally highlighted experiences alleging that PancakeSwap had been selling tokens tied to World Liberty Monetary, a crypto firm linked to the Trump household.

Warren mentioned such exercise raised questions on conflicts of curiosity and the president’s potential affect over crypto coverage, considerations echoed by different Senate Democrats.

The renewed give attention to Warren’s crypto stance comes as political dynamics shift forward of the subsequent election cycle.

John Deaton, a lawyer recognized for representing XRP holders in authorized battles with regulators, introduced in November that he’ll run as a Republican for the US Senate in 2026.

Deaton beforehand challenged Warren within the 2024 election and has emerged as a vocal critic of her method to digital asset regulation.

Warren, Reed Urge DOJ and Treasury to Probe Trump-Linked Crypto Agency

Final month, Warren and Jack Reed additionally known as on the DOJ and the US Treasury to research World Liberty Monetary, a crypto firm linked to the Trump household, over alleged connections to illicit actors in North Korea and Russia.

The senators cited a September 2025 report from watchdog group Accountable.US, which claimed the agency bought tokens to patrons with ties to cash laundering platforms, an Iranian crypto change and North Korean hackers.

World Liberty Monetary has denied any wrongdoing or conflicts of curiosity in response to the allegations.

World Liberty Monetary lists President Donald Trump as a “co-founder emeritus,” together with his sons Donald Jr. and Eric serving as Web3 ambassadors and Barron Trump as a DeFi visionary.

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