The Commerce Department on Friday moved toward easing export controls on the United Arab Emirates, including by saying it will “favorably review” export license applications for MGX, the UAE-backed investment firm that used a stablecoin linked to President Donald Trump’s family for its $2 billion investment in Binance.
An unpublished version of a new 17-page rule viewable in the Federal Register includes one sentence about Commerce’s Bureau of Industry and Security favorably reviewing applications involving MGX semiconductors and servers bound for the UAE.
The rule is scheduled to be officially published on Tuesday, July 14.
Sen. Elizabeth Warren, a Massachusetts Democrat, quickly blasted the new rule, calling it “corrupt” because of MGX’s use of a Trump-connected stablecoin.
MGX used USD1, a stablecoin issued by the Trump family-affiliated World Liberty Financial, to complete its investment in Binance, the world’s largest crypto exchange by daily volume.
The transaction provided a major source of business for the newly launched USD1, and fueled questions about whether Trump’s financial interests could influence U.S. policy toward the UAE.
The broader rule also gives the UAE government, Abu Dhabi AI conglomerate G42 and its cloud subsidiary Core42 access to license exceptions for certain advanced-computing equipment.
The Commerce Department, in a statement, said that it “will significantly upgrade the status of the United Arab Emirates” under export regulations “in recognition of the UAE’s status as a U.S. Major Defense Partner and its support in advancing U.S. national security interests, including Operation Epic Fury,” the war against Iran.
Warren, in a statement, said, “We already know that the UAE royal behind G42 and MGX secretly bought a 49% stake in the Trump crypto company, World Liberty Financial.”
“It was also just revealed that President Trump made a whopping $263 million windfall related to this deal, part of the $1.4 billion he raked in from his crypto ventures last year alone,” Warren said, citing the president’s recent financial disclosure.
“Now, Trump’s Commerce Department is giving G42 license-free access to advanced AI chips and promising favorable treatment for MGX, despite reported concerns about the diversion of sensitive technology to China and other national security risks,” she said.
Warren, who is the 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 this corrupt deal and how it could put our national security at risk.”
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 benefiting the country.
Kessler is already scheduled to testify next week before the House Committee on Foreign Affairs.
There is no evidence in the rule that the UAE’s financial dealings with World Liberty influenced Commerce’s decision.
Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle and xAI would receive streamlined treatment for some controlled equipment used in UAE operations and data center projects under the new rule.
The changes could speed chip sales by reducing the need for separate export licenses, but they do not eliminate restrictions intended to prevent sensitive technology from reaching prohibited users or countries such as China.
The rule also eases controls on some military, satellite and spacecraft-related exports.
