#cryptonews
US Senator Elizabeth Warren is seeking answers from federal law enforcement and financial authorities over whether decentralized cryptocurrency exchanges are under active investigation.
In a letter sent Monday to Treasury Secretary Scott Bessent and US Attorney General Pam Bondi, the Massachusetts Democrat asked whether their departments were “investigating significant national security risks posed by decentralized cryptocurrency exchanges like PancakeSwap.”
She pointed to concerns raised by national security experts and the crypto industry itself, warning that decentralized finance could be exploited by terrorists, criminals and sanctioned states if left unchecked. The senator also questioned whether political considerations were influencing how crypto-related cases are enforced, citing what she described as selective action under the Trump administration.
Warren said the public deserves clarity as Congress weighs crypto market structure legislation, including measures aimed at preventing illicit finance.
John Deaton, a lawyer known for representing XRP holders in legal battles with regulators, announced in November that he will run as a Republican for the US Senate in 2026. Deaton previously challenged Warren in the 2024 election and has emerged as a vocal critic of her approach to digital asset regulation.
The renewed focus on Warren’s crypto stance comes as political dynamics shift ahead of the next election cycle.
The senators cited a September 2025 report from watchdog group Accountable.US, which claimed the firm sold tokens to buyers with ties to money laundering platforms, an Iranian crypto exchange and North Korean hackers. World Liberty Financial lists President Donald Trump as a “co-founder emeritus,” with his sons Donald Jr. and Eric serving as Web3 ambassadors and Barron Trump as a DeFi visionary.
Last month, Warren and Jack Reed also called on the DOJ and the US Treasury to investigate World Liberty Financial, a crypto company linked to the Trump family, over alleged connections to illicit actors in North Korea and Russia.