House Democrats press Treasury to probe Trump‑linked crypto firm over foreign ties, security risks A group of more than 40 House Democrats is urging the Treasury Department to investigate potential conflicts of interest and national security risks tied to World Liberty Financial (WLFI), the crypto venture associated with the Trump family, CNBC reported Thursday. In a letter to Treasury Secretary Scott Bessent, led by Rep. Gregory Meeks (D‑N.Y.), lawmakers called for a formal review of WLFI’s corporate structure and its foreign investment relationships. The request follows a tense hearing before the House Financial Services Committee earlier this month, where Bessent testified and drew sharp rebukes from Meeks, who labeled him a “flunky” of President Trump. Big red flag: $500M Emirati investment A central concern for Democrats is a $500 million investment into WLFI last year by Sheikh Tahnoon bin Zayed Al Nahyan of the United Arab Emirates—sometimes referred to in media coverage as the “spy sheikh.” Meeks said the deal “is not only a matter of national financial instability, but it also carries serious national security implications.” Charter scrutiny as WLFI pursues a national bank charter WLFI is reportedly seeking a national bank charter. Lawmakers want assurances that the chartering process is protected from political interference or foreign influence, arguing this is about more than crypto regulation. “This is no longer just a debate about crypto chartering theory,” the letter states. “It is about foreign ownership, national security, regulatory integrity, and whether our bank‑chartering process is resilient to political and geopolitical pressure.” What Democrats are asking for The letter requests that Treasury explain: - What safeguards exist to prevent foreign governments, proxies, or politically connected investors from using the national bank chartering process to gain leverage in the U.S. financial system or access sensitive financial and technological infrastructure. - Whether the White House, the Office of Management and Budget, or the Treasury have played any role in reviewing or influencing charter decisions by the Office of the Comptroller of the Currency (OCC). Lawmakers asked for a written response by Feb. 26 and stressed that public confidence in the banking regulatory framework hinges on “transparency, independence, and a demonstrated willingness to resist undue influence.” Market reaction WLFI’s native token was trading at $0.1168 at the time of the report—down about 3% over 24 hours but up nearly 10% over the past seven days, according to CoinGecko. Why it matters for crypto If a politically connected crypto firm obtains a national bank charter amid large foreign investments, it could reshape how regulated financial infrastructure intersects with crypto firms and raise fresh questions about geopolitical influence in U.S. finance. Lawmakers’ demands signal closer scrutiny ahead for any crypto project seeking traditional banking powers. Read more AI-generated news on: undefined/news