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World Liberty Financial Faces Scrutiny Over UAE’s $500M Stake

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On February 14, 2026, Sens. Elizabeth Warren and Andy Kim urged Treasury Secretary Scott Bessent to assess whether the Committee on Foreign Investment in the United States (CFIUS) should review a reported $500 million stake by UAE-backed G42 in World Liberty Financial,  The Block. The senators set a March 5 deadline for response, questioning potential access to sensitive user data and ties to China’s military through G42’s past affiliations. This follows a House probe by Rep. Ro Khanna, expanding congressional oversight of the Trump family-linked crypto venture.

Deal Details and Potential Risks

G42, linked to UAE’s national security adviser Sheikh Tahnoon bin Zayed Al Nahyan, acquired a 49% stake via Aryam Investment 1, signed by Eric Trump,  Wall Street Journal. Of the $250 million upfront, $187 million went to Trump family entities and $31 million to Steve Witkoff affiliates. World Liberty Financial, co-founded by Donald Trump and Witkoff, offers the USD1 stablecoin ($5 billion supply) and plans a remittance platform. Concerns centre on CFIUS’ mandate to vet foreign investments for national security risks, including data access.

Broader Implications for Crypto Regulation

The scrutiny highlights tensions in Trump’s pro-crypto stance, with World Liberty’s OCC bank charter application pending despite Warren’s delay request. G42 divested Chinese ties in 2024, but bipartisan worries persist. USD1’s growth and Mar-a-Lago forum on February 18 underscore World Liberty’s ambitions. X posts from @CryptoInsights note potential export policy influence on AI chips for the UAE. Bitcoin ($113,234) and Ethereum ($4,070) remain stable, but regulatory probes could chill institutional inflows.

Outlook: Balancing Innovation and Security

CFIUS review could delay World Liberty’s expansion or force divestment. Investors should monitor Treasury responses by March 5 and OCC updates on occ.gov. BTC support at $112,000 and ETH at $4,000 are key,  TradingView. Diversify into USDC to hedge risks. Follow @TheBlock__ on X for developments. While Trump’s policies favour crypto, national security concerns may temper growth, shaping a cautious 2026 landscape.

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