In a recent letter, multiple Senate Democrats have raised concerns about a potential breach of federal ethics laws due to the US Special Envoy to the Middle East’s failure to divest from his crypto asset holdings.
US Senators Question Witkoff’s Crypto Holdings
On Wednesday, eight Senate Democrats, led by Senator Adam Schiff, questioned the US Special Envoy for peace missions, Steve Witkoff, about his digital asset ownership and his links to the Trump Family crypto ventures.
In a letter shared by Fortune, the US lawmakers raised concerns about a potential conflict of interest as Witkoff’s latest financial disclosure showed that he has yet to divest from some of his crypto holdings, including an ownership stake in World Liberty Financial (WLF) and the company’s WLFI token. Notably, the US Special Envoy is one of WLFI’s co-founders alongside his son, Zach Witkoff, and members of the Trump Family.
“As long as you maintain ownership of these assets, you stand to profit from any decisions you are involved with while serving in the Administration. Moreover, the public has ample reason to be concerned that your decision-making may also be influenced by your close personal and business ties to the Trump Organization,” the letter read.
The Senators noted that one of WLF’s co-founders, Zak Folkman, previously affirmed that by May 23, 2025, Witkoff had “no operational role, no financial interest in WLFI deals, and no influence on day-to-day decisions.” Folkman also added that Witkoff was “in the process of fully divesting from WLFI,” which had not happened at the time of the release of White House financial report in August.
To the lawmakers, this underscores the “troubling entanglement” between the US Special Envoy’s official duties and his private financial interest tied to the Trump family businesses, highlighting World Liberty Financial’s $2 billion deal with a United Arab Emirates (UAE) firm involving the company’s stablecoin USD1.
As reported by Bitcoinist, previous Wall Street Journal (WSJ) coverage raised similar concerns regarding the “extraordinary blurring of government negotiations and private business dealings,” claiming that it is “rewriting the diplomatic playbook for some foreign countries looking to gain traction with the new Trump administration.”
In May, the WSJ claimed that father-and-son duo Steve and Zach Witkoff have potentially helped blur the lines of private business and public duties of the current administration, highlighting World Liberty Financial’s deal to enable MGX’s $2 billion investment.
The report also noted a previous article that claimed the elder Witkoff was allegedly involved in the talks between the Trump family and Binance. Nonetheless, these talks have been denied by Binance’s co-founder and former CEO Changpeng “CZ” Zhao.
Ethical Compliance Inquiries Mount
“Your failure to divest your ownership in these assets raises serious questions about your compliance with federal ethics laws and, more importantly, ability to serve the American people over your own financial interests,” the lawmakers stated.
In the letter, the Senate Democrats asked Witkoff to respond to multiple requests by October 31, 2025. Among the questions, they inquired about the status of his financial interest in the Trump-linked crypto company.
Additionally, they asked the US special Envoy if he had received a written waiver that exempts him from penalties and allows him to participate in key discussions with the UAE while owning a stake in WLFI.
If a waiver has not been granted, they also requested an explanation of how Witkoff’s financial holdings do not violate federal ethics laws and regulations, which prohibit government officials from participating in ventures that could benefit them or their relatives.
It’s worth noting that Witkoff is one of multiple US officials who have been questioned about their own holdings or the US President’s crypto ventures. In July, Senate Democrats pressed the new head of the Office of the Comptroller of the Currency (OCC) about a potential conflict of interest related to the Trump family’s stablecoin, USD1.
Earlier this year, two senators raised similar concerns in a letter to former acting chairman of the Securities and Exchange Commission (SEC), Mark Uyeda. Meanwhile, Democratic lawmakers proposed the Curbing Officials’ Income and Nondisclosure (COIN) Act to prevent crypto-related conflicts of interest four months ago.
A recent investigation highlighted that, unlike most of his predecessors, President Trump has not put his crypto ventures in a trust managed by an independent party. However, the White House has denied any potential conflict of interest between the President’s businesses and his official duties.
