Overview
- In a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, Senator Elizabeth Warren asked whether officials are investigating risks from decentralized exchanges, highlighting PancakeSwap’s role and potential improper political influence.
- Warren pointed to PancakeSwap’s promotion of trading in USD1, the stablecoin associated with World Liberty Financial, and referenced reporting that USD1 deepened integration with Binance as the company denied any connection to Changpeng Zhao’s pardon.
- The senator cited analyses from Allium and TRM Labs alleging that funds from the $1.4 billion Bybit theft were laundered through DeFi tools, including research that about 20%—roughly $263 million—moved through PancakeSwap.
- Her inquiry underscores concerns that DeFi platforms process large volumes without traditional KYC controls, which she argues heightens money-laundering and national-security risks.
- Senate negotiations on a crypto market-structure bill have slipped into January with DeFi rules and ethics limits for senior officials unresolved, while the White House has pushed back on conflict-of-interest proposals and rejects claims of presidential conflicts.