Democratic lawmakers have initiated an investigation into former President Donald Trump’s increasing engagement with the cryptocurrency sector. They have requested comprehensive financial documentation from the U.S. Treasury regarding his ventures in the digital asset realm.
In a correspondence dated May 14, Representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin formally urged Treasury Secretary Scott Bessent to release all suspicious activity reports (SARs) submitted since 2023 for various entities associated with Trump.
Among the entities in question are World Liberty Financial (WLF) and the Official Trump token (TRUMP), both integral to Trump’s recent activities in the digital asset market.
Understanding SARs: A Tool for Monitoring Financial Crimes
Suspicious activity reports are generated by financial institutions and submitted to the Financial Crimes Enforcement Network (FinCEN) when there are indications of potentially illegal activities, such as money laundering or fraud.
The lawmakers’ request also encompasses SARs that mention WinRed, America PAC, Elon Musk, and various other individuals and organizations. They have set a deadline of May 30 for the Treasury to provide the requested information.
The objective, according to the lawmakers, is to evaluate whether new legislative measures are necessary to avert possible breaches of laws related to campaign financing, securities, bribery, and corruption.
“We must guard against financial misconduct linked to current or potential federal officials,” the letter emphasizes.
One area of concern highlighted is the possibility that World Liberty Financial may have facilitated foreign influence.
NEW TODAY: Oversight Dems, @HouseJudiciary, and @HouseAdm_Dems are demanding the Treasury Dept turn over Suspicious Activity Reports on these organizations to investigate election fraud & corruption.
Democrats are fighting to protect the integrity of our govt and our elections. pic.twitter.com/H84miZjBbL
— Oversight Committee Democrats (@OversightDems) May 14, 2025
Reports suggest that the token sale included offers to international investors, which Democrats argue may fall under less stringent regulatory supervision than similar U.S. offerings.
Furthermore, the involvement of cryptocurrency entrepreneur Justin Sun—who has invested in WLF and recently saw a pause in a lawsuit from the SEC against him—has raised additional concerns.
The Trump coin itself is under examination as well, with lawmakers noting that the identities of buyers remain undisclosed, potentially providing a pathway for unreported influence or favoritism towards the former president through token acquisitions.
This scrutiny marks the latest chapter in the Democrats’ efforts to investigate Trump’s connections to the cryptocurrency industry.
Earlier this month, a group of senators requested that the Department of Justice and the Treasury look into Trump’s relationships with Binance.
On May 6, House Democrats introduced two pieces of legislation and launched a subcommittee inquiry to determine whether Trump might profit personally from these digital ventures while running for reelection.
Senate Democrats Propose New Bill to Ban Crypto Activities by Officials
Last week, Senate Democrats proposed new legislation targeting financial gains by federal officials, including former President Trump and his family, from cryptocurrency activities.
This initiative arises amid intensifying scrutiny of Trump-affiliated digital asset projects, particularly a meme coin that has garnered significant public interest.
Senator Chris Murphy introduced the proposed legislation, known as the Modern Emoluments and Malfeasance Enforcement (MEME) Act, on May 6.
The bill aims to prohibit the president, vice president, members of Congress, and other high-ranking officials, along with their spouses and children, from issuing, sponsoring, or promoting digital assets, including securities, commodities, and futures.
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