U.S. Senator Elizabeth Warren, ranking Democrat on the Senate Banking Committee, sent a letter on December 16, 2025, to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, urging a national security investigation into decentralized finance (DeFi) platforms like PancakeSwap.
She highlighted risks from anonymous trading—facilitating hundreds of millions in daily transactions without user identification—and cited examples of illicit use, including North Korean hackers laundering stolen funds. Warren expressed particular concern over reports of PancakeSwap promoting tokens linked to President Trump's World Liberty Financial, warning of potential improper political influence on enforcement.
This comes amid stalled Senate negotiations on a bipartisan crypto market structure bill, delayed to January 2026 due to unresolved issues like DeFi regulation. Warren has been largely sidelined in talks, where DeFi treatment remains a key sticking point.
A Trump administration probe into the president's business ties is seen as unlikely, with the White House denying any conflicts. Democrats also seek bans on officials' crypto interests, but compromises remain uncertain as budget deadlines loom.
