Comprehensive Analysis: Senate Concerns Over US Special Envoy’s Crypto Involvement
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Senators Probe Witkoff’s Digital Asset Holdings
In a recent development, a group of eight Senate Democrats, spearheaded by Senator Adam Schiff, has expressed concern over Steve Witkoff, the US Special Envoy for Middle East peace missions, concerning his involvement in digital assets. The core of this inquiry is based on Witkoff’s failure to divest from his cryptocurrency holdings, which include interests in World Liberty Financial (WLF) and its WLFI token. These revelations have sparked questions about a possible conflict of interest due to his affiliations with the Trump Family’s crypto endeavors.
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Concerns of Potential Conflict of Interest
According to a letter revealed by Fortune, US legislators are troubled by Witkoff’s continued ownership of these digital assets, which may present a conflict with his governmental responsibilities. The letter emphasizes the risk of Witkoff potentially benefiting from administrative decisions due to his financial interests. Additionally, the lawmakers noted his close ties with the Trump Organization, which could further influence his decision-making process.
Witkoff’s Involvement in World Liberty Financial
World Liberty Financial, a venture co-founded by Witkoff, his son Zach, and members of the Trump Family, remains a focal point of concern. Zak Folkman, a co-founder of WLF, previously stated that by May 2025, Witkoff would have no operational role or financial interest in WLFI. However, this divestment had not occurred by the time the White House released its financial report in August.
Implications of the $2 Billion UAE Deal
Highlighting potential ethical conflicts, the Senate Democrats pointed to World Liberty Financial’s $2 billion agreement with a UAE firm involving their stablecoin, USD1. This agreement has attracted scrutiny due to its unprecedented blend of private ventures and governmental negotiations, raising red flags about ethical compliance.
Ethical Compliance Under Scrutiny
The Senators have requested Witkoff to address several inquiries by October 31, 2025, including whether he holds a waiver allowing him to participate in discussions with the UAE while maintaining an interest in WLFI. Furthermore, they seek clarification on how his financial holdings align with federal ethics regulations that prevent government officials from engaging in enterprises benefiting them or their relatives.
Broader Implications for US Officials
Steve Witkoff is not alone in facing scrutiny over potential conflicts of interest related to digital assets. In July, the new head of the Office of the Comptroller of the Currency (OCC) was questioned about possible conflicts concerning the Trump family’s stablecoin, USD1. Likewise, similar concerns were raised with the former acting chairman of the Securities and Exchange Commission (SEC), Mark Uyeda, earlier this year.
Legislative Measures to Address Conflicts
In response to these issues, Democratic lawmakers have introduced the Curbing Officials’ Income and Nondisclosure (COIN) Act to mitigate crypto-related conflicts of interest. A recent investigation revealed that President Trump has not placed his crypto ventures in a trust managed by an independent entity, distinguishing him from his predecessors. Despite these findings, the White House has denied any conflicts between the President’s business dealings and his official responsibilities.
WLFI’s current trading price stands at $0.12, according to TradingView data.
