The Commerce Department on Friday announced it will "favorably review" export license applications for MGX, a UAE-backed investment firm that used a stablecoin linked to President Donald Trump's family to fund its $2 billion investment in Binance. The unpublished rule, set for official publication on Tuesday, also upgrades the UAE's status under export regulations, granting the government and entities like G42 and Core42 license exceptions for certain advanced-computing equipment. Senator Elizabeth Warren immediately blasted the move as "corrupt," citing MGX's use of USD1, a stablecoin issued by Trump family-affiliated World Liberty Financial.
The Stablecoin Connection and Financial Ties
MGX used USD1 to complete its investment in Binance, the world's largest crypto exchange by daily volume, providing a major boost to the newly launched stablecoin. Warren noted that the UAE royal behind G42 and MGX secretly bought a 49% stake in World Liberty Financial, and that President Trump made a $263 million windfall from crypto ventures last year, according to his financial disclosure. The transactions have fueled questions about whether Trump's financial interests could influence U.S. policy toward the UAE.
Broader Rule Changes and Industry Impact
The 17-page rule also gives Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle and xAI streamlined treatment for some controlled equipment used in UAE operations and data center projects. The changes could speed chip sales by reducing the need for separate export licenses, but do not eliminate restrictions intended to prevent sensitive technology from reaching prohibited users or countries like China. The rule eases controls on some military, satellite and spacecraft-related exports as well.
Political Backlash and Hearings
Warren, ranking Democrat on the Senate Banking Committee, called for Commerce Secretary Howard Lutnick and BIS Under Secretary Jeffrey Kessler to testify before Congress to explain what she called a "corrupt deal." Warren and other Senate Democrats earlier Friday called for hearings into whether UAE-linked investments in World Liberty influenced administration decisions on advanced chips, arms sales and other policies. Kessler is already scheduled to testify next week before the House Committee on Foreign Affairs. The Commerce Department said the upgrade recognizes the UAE's status as a U.S. Major Defense Partner and its support in advancing national security interests, including the war against Iran. There is no evidence in the rule that the UAE's financial dealings with World Liberty influenced the decision.