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The Trump administration eased export restrictions to the UAE, prompting Senator Warren to slam the move, citing potential corruption and suggesting the Trump family's cryptocurrency portfolio could benefit.
July 11, 2569 (CNBC) – The U.S. Department of Commerce is moving forward with easing export controls to the United Arab Emirates (UAE). This includes stating that it would “consider positively” the export license application of MGX, a UAE government-backed investment company that used stablecoins linked to President Donald Trump’s family to invest $2,000 billion in Binance.
An unpublished 17-page document of the new regulations, available on the Federal Register, states that the Bureau of Industry and Security (BIS) under the Department of Commerce will consider granting positive licenses to MGX semiconductors and servers destined for the UAE. The regulations are scheduled for official publication on July 14.
Senator Elizabeth Warren launched an attack.
Senator Elizabeth Warren (Democratic Representative from Massachusetts) The new regulations quickly drew criticism, branding them as "corrupt" requirements because MGX uses a stablecoin linked to Trump. MGX uses USD1, a stablecoin that was issued...
World Liberty Financial, a company linked to the Trump family, conducted investment transactions with Binance, the world's largest cryptocurrency exchange by daily trading volume. These transactions became a major source of business for the newly launched USD1 coin, raising questions about whether Trump's financial interests might influence U.S. policy towards the UAE. Furthermore, MGX is also a financial backer of artificial intelligence (AI) giants OpenAI and Anthropic.
Elevating the UAE's status and favoring technology corporations.
Overall, these new regulations also open up opportunities for the UAE government, as well as Dubai-based AI companies like G42 and its cloud subsidiary Core42, to receive license exceptions for certain types of advanced computing equipment.
U.S. Department of Commerce stated in a statement that This action “will significantly enhance the status of the United Arab Emirates” under export regulations, “recognizing the UAE’s status as a US Major Defense Partner and its support in promoting US national security interests, including in Operation Epic Fury, the war against Iran.”
Warren stated in a press release that:
"It is well known that the UAE royal family members behind G42 and MGX have secretly acquired a 49% stake in World Liberty Financial, Trump's crypto company."
"And it has just been revealed that President Trump received a massive $263 million from this deal, which is part of the $1,400 billion he raked in from the crypto business last year alone." Warren said, citing the president's latest asset disclosure information.
“However, the Trump Commerce Department is now granting the G42 access to advanced AI chips without licenses and promising special consideration for MGX, despite reports of concerns about the illicit transfer of sensitive technology to China and other national security risks.”
They are calling for an investigation in Congress.
Warren, who serves as the Democratic co-chair of the Senate Banking Committee, has called for Howard Lutnick, Secretary of Commerce. Jeffrey Kessler, Deputy Secretary-General for Business Affairs (BIS) at the Ministry of Commerce. They will testify before Congress "to explain this potentially corrupt deal and clarify how it would put our national security at risk."
Earlier on Friday, Warren and other Democratic senators called for an investigation into whether UAE-linked investments in the company World Liberty influenced government decisions regarding advanced chips, arms sales, and other policies favorable to the UAE. Kessler is already scheduled to testify before the House Foreign Affairs Committee next week.
However, the new regulations found no evidence that the UAE's financial agreement with World Liberty influenced the Commerce Department's decision.
Impact on leading technology companies.
Under these new regulations, global IT companies such as Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle, and xAI will receive streamlined treatment for certain types of control equipment used in data center operations and projects in the UAE.
These changes could accelerate chip sales by reducing the need for individual export licenses, but they do not eliminate restrictions that prevent sensitive technology from falling into the hands of end-users or banned countries such as China. In addition, these regulations also ease export controls on certain types of goods related to the military, satellites, and spacecraft.
refer : www.cnbc.com
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