U.S. Senator Elizabeth Warren (D-Mass.) on Monday escalated pressure on DeFi tied to President Donald Trump, demanding a national security probe just as Senate negotiations over a crypto market structure bill slipped into January.
Warren Seeks Probe Into Trump-Linked DeFi Activity
Warren, the ranking Democrat on the Senate Banking Committee, asked federal officials to investigate decentralized finance platforms.
She said those platforms may be amplifying tokens connected to World Liberty Financial Inc. (CRYPTO: WLFI), a business linked to Trump, according to CoinDesk.
In a letter sent Monday to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, Warren raised concerns about PancakeSwap (CRYPTO: CAKE), a decentralized exchange that operates across multiple blockchains and plays a major role on Binance's BNB Chain (CRYPTO: BNB).
She asked whether the administration is examining "any improper political influence" on enforcement decisions tied to DeFi activity.
This echoes a similar request she supported last month involving World Liberty Financial.
Crypto Market Structure Bill Slips Into January
Warren's renewed push comes as Senate talks on a long-awaited crypto market structure bill continue to drag.
Senate Banking Committee Chairman Tim Scott (R-SC) has said the legislation will now be taken up in January after negotiators failed to reach agreement before year-end.
While Warren has been one of the most vocal critics of the bill, a bloc of Democrats has continued negotiating with Republicans, sidelining her influence in the process.
DeFi regulation remains one of the most contentious unresolved issues, with industry sources describing it as a potential deal-breaker.
DeFi Rules Emerge As Central Fault Line
Warren criticized DeFi platforms that process hundreds of millions of dollars in daily transactions without requiring user identification.
She framed those structures as national security risks, particularly as Congress debates rules aimed at preventing illicit finance.
Democrats have also pushed to restrict senior government officials from maintaining business interests in the cryptocurrency sector — another sticking point that has drawn resistance from the White House.
White House Pushback Clouds Talks
Trump administration officials have repeatedly rejected claims that the president's crypto ties present conflicts of interest.
The White House has already dismissed early proposals aimed at limiting those connections, complicating efforts to reach bipartisan agreement.
If negotiations extend too far into the new year, the bill could collide with looming budget deadlines around Jan. 30, raising the risk of broader legislative delays similar to past government shutdowns.
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