A $500 million deal between World Liberty Financial and the UAE is sparking major backlash in Congress, leaving the CLARITY Act caught in the crossfire.
Morning Minute is a daily newsletter by Tyler Warner. The analysis and opinions expressed are his own.
The President’s deep-rooted ties to the crypto industry are once again putting the sector’s broader legislative agenda in a precarious position.
Senator Chris Murphy (D-CT) has accused President Trump of “brazen, open corruption.” Murphy alleges that the UAE secretly funneled $187 million to Trump family entities via World Liberty Financial just days before his inauguration. In exchange, Murphy claims, the administration granted the UAE access to advanced AI chips that had previously been restricted under the Biden administration.
The Senator’s allegations of “potentially criminal conduct” stem from a $500 million deal in which UAE-backed Aryam Investment acquired a 49% stake in World Liberty Financial only four days before Trump took office.
According to reporting by the Wall Street Journal, roughly $187 million was directed to Trump family entities, while another $31 million flowed to the family of special envoy Steve Witkoff. These transactions reportedly occurred shortly before the administration greenlit expanded chip access for the UAE.
Ironically, these revelations come just as the White House hosted a high-stakes, two-hour crypto summit on Monday. Executives from Ripple, Coinbase, Kraken, Tether, and Circle met with major banking leaders to negotiate stablecoin yield provisions within the CLARITY Act. While no deal was reached, the administration has set a hard February deadline for a compromise.
The Fallout
- Senator Murphy: Speaking on the Senate floor, Murphy didn’t pull any punches: “That is corruption. Those are the elements of a bribe. This is potentially criminal conduct.” He warned that “the rule of law is coming back” and that those involved “are going to jail.”
- President Trump: When questioned by reporters on Monday, Trump distanced himself from the deal: “I don’t know about it. My sons are handling that. My family is handling it, and I guess they get investments from different people.”
- World Liberty Financial: A spokesperson for the entity issued a flat denial: “Any claim that this deal had anything to do with the Administration’s actions on chips is 100% false. The left-wing media is dishonestly pushing baseless innuendo.”
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