Sen. Elizabeth Warren (D-Mass.) urged Congress to implement stricter regulations on digital assets on Wednesday, citing concerns over President Donald Trump’s “superhighway of crypto corruption.”
What Happened: During a Senate Banking, Housing, and Urban Affairs Committee hearing, Warren cautioned that any cryptocurrency regulation should not have “massive unintended consequences.”
“President Trump has made it impossible to have a conversation about cryptocurrency legislation that doesn't address his most successful grift yet,” the senior Democrat said.
Warren cited a recent New York Times report that found crypto to be the most significant source of Trump’s wealth.
“If Congress is going to ratify a sweeping crypto regulatory regime, it is critical we shut down the President's superhighway of crypto corruption,” Warren said.
During the hearing, Warren sought insights from legal scholar and former chief White House ethics lawyer Richard W. Painter on the potential impacts of a new federal regulatory framework for the Trump family’s cryptocurrency ventures.
“It will make him very rich. Richer than he already is,” Painter said, when asked about the impact on the Official Trump TRUMP/USD meme coin.
Warren further inquired about who would have the power to appoint and dismiss regulators implementing new rules governing crypto holdings if the bill passes. Painter responded, “The President of the United States.”
The White House didn’t immediately return Benzinga’s request for comment.
See Also: Trump Media’s New ‘Crypto Blue Chip ETF’ Filing Comes With A Twist
Why It Matters: This investigation follows Warren’s previous criticism of the Trump family’s involvement in the stablecoin space, which she labeled a potential threat to national security and a conduit for corruption. She specifically expressed concerns about the dollar-pegged cryptocurrency USD1
Warren urged Congress to vote against the GENIUS Act, also known as the stablecoin bill, because it would enable Trump's "crypto corruption." The bill eventually passed the Senate.
Moreover, Trump reported incomes exceeding $57 million from World Liberty Financial, the firm behind USD1, in his latest disclosure, leading to further scrutiny of his cryptocurrency ventures.
Photo Courtesy: Sheila Fitzgerald On Shutterstock.com
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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