In a recent development stirring the waters of political ethics, multiple Senate Democrats have raised alarms regarding a potential breach of federal ethics laws due to the U.S. Special Envoy to the Middle East, Steve Witkoff, failing to divest from his crypto asset holdings.
U.S. Senators Question Witkoff’s Crypto Holdings
On Wednesday, a bipartisan group of eight Senate Democrats, spearheaded by Senator Adam Schiff, turned their scrutiny toward Witkoff, inquiring about his ownership of digital assets and his connections to the Trump family’s crypto ventures.
In a letter shared publicly, the lawmakers highlighted a possible conflict of interest, pointing out that Witkoff’s most recent financial disclosure revealed he has yet to divest from significant crypto holdings. Among these are his ownership stake in World Liberty Financial (WLF) and the company’s WLFI token. Notably, Witkoff co-founded WLF 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 stated.
The Senators mentioned that one of WLF’s co-founders, Zak Folkman, previously asserted 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 indicated that Witkoff was “in the process of fully divesting from WLFI,” a move that had not materialized by the time of the White House financial report released in August.
This situation underscores the “troubling entanglement” between Witkoff’s official duties and his private financial interests linked to Trump family businesses, particularly in light of World Liberty Financial’s $2 billion deal with a firm in the United Arab Emirates involving the company’s stablecoin, USD1.
Previous coverage has echoed similar concerns, suggesting an “extraordinary blurring of government negotiations and private business dealings,” with implications that it could reshape diplomatic strategies for foreign nations seeking favor with the current administration.
Ethical Compliance Inquiries Mount
The Senate Democrats further asserted, “Your failure to divest your ownership in these assets raises serious questions about your compliance with federal ethics laws and, more importantly, your ability to serve the American people over your own financial interests.”
In their correspondence, the Senators demanded that Witkoff respond by October 31, 2025, addressing several inquiries regarding his financial interests in the Trump-linked crypto company. Among their questions was whether he had received any written waiver allowing him to participate in crucial discussions with the UAE while retaining a stake in WLFI.
Should no waiver exist, the lawmakers seek clarification on how Witkoff’s financial holdings do not infringe upon federal ethics regulations prohibiting government officials from engaging in ventures that could financially benefit them or their relatives.
Witkoff is not the only U.S. official facing scrutiny regarding crypto investments. Earlier this year, Senate Democrats pressed the head of the Office of the Comptroller of the Currency about potential conflicts related to the Trump family’s stablecoin. Additionally, two senators raised similar concerns with the former acting chairman of the Securities and Exchange Commission.
In a noteworthy investigation, it has been revealed that President Trump has not placed his crypto ventures in a trust managed by an independent party, a practice typical of past administrations. However, the White House has dismissed any claims of conflict between the President’s business interests and his official duties.
