Senate Probe Puts Binance, Tether and Trump-Linked Crypto Firms on Notice

Sen. Richard Blumenthal gave Binance, Tether and two Trump-linked firms until January 4 to produce records for a Senate probe. He warns that missing the date would force the Permanent Subcommittee on Investigations (PSI) to weigh other enforcement options.

Blumenthal leads the panel’s Democratic minority today but is set to chair it when the new Congress convenes in January. Tether (USDT) accounts for about 60% of stablecoin market value, according to the probe’s September staff report.

What Does Each Target in the Senate Probe Face?

Binance and Tether face questions about illicit crypto use and the administration’s dealings with crypto firms. Blumenthal opened his Binance inquiry in February. Binance rejected the allegations of Iran sanctions evasion in March, calling them false.

A September minority staff report found 84% of 846 sanctioned or seizure-targeted Iran-linked wallets used USDT almost exclusively. Tether then responded the day the report landed, citing about $550 million in Iran-linked freezes it supported this year.

An October 22 letter sought Tether’s records on Nxum, a consulting firm. Its co-founder, Bo Hines, formerly directed a White House crypto council. The letter also cites Wall Street Journal reporting that Tether sent Nxum more than $6 million.

Meanwhile, World Liberty Financial, a Trump family crypto venture, and Fight Fight Fight LLC face a separate inquiry. Fight Fight Fight manages the Official Trump (TRUMP) meme coin, which the May 2025 inquiry also covers.

Blumenthal points to reports that the firms may be helping officials sidestep ethics rules and accepting money from foreign governments.

Can the Subcommittee Force the Issue?

Democrats’ control of Congress puts Blumenthal in line to chair the panel. Chairs can issue subpoenas, legal orders to hand over documents.

However, the release does not say whether he will use them, or what other options the PSI has in mind.

Therefore, January 4 could test how a Democratic-led panel treats the largest stablecoin issuer and Trump-linked ventures.