CFIUS Investigation of UAE Investment in World Liberty Financial

Now I have comprehensive information to provide you with a thorough analysis of this developing situation.

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Senate Democrats

(D-MA) and (D-NJ) have formally requested that the Committee on Foreign Investment in the United States () investigate a reported (representing a ) in , the Trump-family-backed cryptocurrency venture [1]. The investment was made by , an entity controlled by , the UAE’s national security advisor and brother of the UAE president [2].

This request follows a similar probe initiated by

(D-CA), ranking member of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, who sent a letter to World Liberty Financial co-founder Zach Witkoff demanding detailed information and documents related to the investment [3].

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The senators’ letter to Treasury Secretary

outlines several national security concerns [1][2]:

1. Sensitive Personal Data Access
   : Potential access by the UAE or China to “sensitive personal information” collected by the firm through its cryptocurrency operations.

2. G42 Connection
   : The UAE-backed company
   G42
   , which has previously provided technology to China’s military, has been cited as a potential link raising concerns about technology transfer.

3. AI Chip Export Concerns
   : Representative Khanna’s letter noted that the investment may have resulted in changes to U.S. government policies designed to prevent the diversion of advanced AI chips and related computing capabilities to China through third countries such as the UAE [2].

4. Binance Connection
   : The investment was followed by the use of World Liberty Financial’s
   USD1 stablecoin
   to facilitate a
   $2 billion investment
   by MGX (an Emirati sovereign wealth fund) into
   Binance
   , a cryptocurrency exchange founded in China [2].

5. Conflict of Interest
   : The timing of the investment—Days before President Trump’s inauguration in January 2025, when Eric Trump signed the agreement—raises questions about potential conflicts of interest in foreign policy negotiations [4].

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This investigation signals that

with the same rigor applied to traditional sectors like technology, real estate, and critical infrastructure. This could establish a precedent leading to:

• Mandatory filing requirements
  for foreign crypto investments exceeding certain thresholds
• Expanded definition of “critical technology”
  to include blockchain infrastructure, cryptographic protocols, and financial technology
• Increased scrutiny of shell companies
  and indirect investment structures used to bypass CFIUS review

The US is already moving toward a

for crypto regulation, where the SEC regulates “digital investment assets” and the CFTC regulates “digital commodities” [5]. CFIUS involvement adds a —national security review—that cryptocurrency companies must now consider alongside securities and commodities regulation.

Expect potential legislation or regulatory rules requiring cryptocurrency companies to disclose:

• Beneficial ownership
  of foreign investors
• Data collection practices
  and storage locations
• Connections to foreign governments
  or state-backed entities
• Technology partnerships
  with foreign companies

Potential Impact	Description
Increased Due Diligence	Foreign investors, particularly from Gulf states and China, may face heightened scrutiny
Longer Review Timelines	CFIUS reviews can extend 45-90 days (or longer), delaying investment closures
Investment Structure Changes	Foreign investors may use more complex structures to avoid CFIUS attention
Reputational Risks	Association with national security concerns may deter some investors

The investigation reflects

in emerging sectors. The UAE, which has sought to balance relationships with both the US and China, finds itself at the center of this geopolitical tension. This could:

• Push the UAE
  to more clearly align with US interests or face greater scrutiny
• Influence other Gulf states
  considering similar investments in US crypto ventures
• Create opportunities
  for countries with clearer US alignment to invest more freely

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1. CFIUS Investigation Conclusions
   : If CFIUS determines the investment poses national security risks, it could recommend:
   • Unwinding of the investment
   • Mandatory mitigation measures (data localization, board composition changes)
   • Presidential action to block or impose conditions

2. Legislative Response
   : Congress may pass additional legislation specifically addressing foreign investment in cryptocurrency and digital asset companies.

3. Regulatory Coordination
   : Enhanced coordination between CFIUS, SEC, and CFTC could create a
   unified federal approach
   to cryptocurrency oversight.

4. Market Impact
   : Prolonged uncertainty could affect
   sentiment toward US crypto companies
   seeking foreign capital, potentially favoring domestic investors or allies with closer US ties.

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The CFIUS investigation into UAE investments in World Liberty Financial represents a

for US cryptocurrency regulation. What was previously a sector with relatively limited federal oversight is now firmly in the national security spotlight. This development will likely result in:

• More rigorous scrutiny
  of foreign capital flows into US crypto companies
• Greater compliance burdens
  for cryptocurrency firms accepting foreign investment
• Potential reshaping
  of the global cryptocurrency investment landscape as capital flows adjust to new regulatory realities

The outcome of this specific investigation will provide critical signals about the Biden administration’s (and now Trump’s) approach to regulating foreign investment in digital assets, potentially setting the template for future reviews of similar transactions.

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[1] Reuters - “Senate Democrats seek CFIUS probe of reported UAE stake in Trump family’s crypto company” (https://www.reuters.com/legal/government/senate-democrats-seek-cfius-probe-reported-uae-stake-trump-familys-crypto-2026-02-13/)

[2] House Democrats Select Committee on the CCP - Letter to World Liberty Financial (https://democrats-selectcommitteeontheccp.house.gov/sites/evo-subsites/democrats-selectcommitteeontheccp.house.gov/files/evo-media-document/2-4-26-scc-letter-to-wlf.pdf)

[3] The Block - “House launches probe into $500 Million UAE deal linked to World Liberty Financial” (https://www.theblock.co/post/388607/house-launches-probe-world-liberty-financial)

[4] The New York Times - “U.A.E. Firm Quietly Took Stake in the Trump Family’s Crypto Company” (https://www.nytimes.com/2026/02/01/us/politics/trump-crypto-uae-world-liberty.html)

[5] Regulatory and Compliance - “Two-lane Highway Takes Shape for U.S. Crypto Regulation” (https://www.regulatoryandcompliance.com/2026/01/two-lane-highway-takes-shape-for-u-s-crypto-regulation-digital-securities-regulation-by-sec-digital-commodities-regulated-by-cftc/)