TL;DR
- Senator Warren calls for national-security review of DeFi platforms.
- Specifically cites PancakeSwap and links to Trump-related business interests.
- Senate crypto market structure bill negotiations delayed until January.
U.S. Senator Elizabeth Warren renewed pressure on federal agencies by calling for a national-security review tied to DeFi platforms and links to President Donald Trump’s business interests, as Senate talks on a crypto market structure bill slip into January. Warren, the ranking Democrat on the Senate Banking Committee, raised concerns while negotiations continue without a final agreement.
In a letter sent Monday to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, Warren urged scrutiny of PancakeSwap, a decentralized exchange operating across multiple blockchains and a major protocol on Binance’s chain. Warren cited activity involving tokens connected to World Liberty Financial Inc., a firm associated with Trump. The letter asked regulators to assess any improper political influence on enforcement decisions related to platform activity.
Warren framed the request within ongoing legislative debate. She argued that lawmakers need clarity on enforcement risks while drafting rules aimed at preventing terrorists, criminals, and hostile states from using decentralized finance to fund operations. Her position places additional strain on talks already delayed beyond year-end.
DeFi oversight becomes a fault line in Senate talks
Warren criticized platforms that process hundreds of millions of dollars in daily transactions while allowing users to trade without registration or identity checks. Oversight of DeFi remains a central unresolved issue in the market structure bill, according to participants. Industry representatives describe treatment of decentralized platforms as a deciding factor for support of any final package.
Despite Warren’s objections, negotiations moved forward without her direct involvement. A group of Senate Democrats joined Republicans to continue talks, leaving Warren largely sidelined within her committee. Senate Banking Committee Chairman Tim Scott confirmed the bill returns to the panel’s agenda in January after missing the prior deadline.
The White House has rejected claims of conflicts tied to Trump’s crypto-related business interests. Administration officials maintain such ties do not affect enforcement decisions. Democrats, however, continue to press for limits on senior officials holding business interests in the sector, a proposal already resisted by the White House.
Timing adds pressure
Extended talks risk collision with congressional budget negotiations approaching a January 30 deadline. A prior budget dispute shut down the federal government for weeks and delayed crypto legislation. With negotiations resuming next month, Warren’s request introduces another test for lawmakers seeking agreement on rules governing U.S. crypto markets.
