The Department of Commerce on Friday moved to ease export controls in the United Arab Emirates, including saying it will “gently review” export license applications for MGX, a UAE-backed investment firm that has used a stablecoin linked to President Donald Trump’s family for its $2 billion investment. Binance.
An unpublished version of the new 17-page law seen in the Federal Register includes a single sentence about the Commerce Bureau of Industry and Security closely reviewing applications involving MGX semiconductors and servers tied to the UAE.
The law is scheduled to be officially published on July 14.
Senator Elizabeth Warren, a Massachusetts Democrat, quickly blasted the new law, calling it “corrupt” because of MGX’s use of a Trump-linked stablecoin.
MGX used USD1, a stablecoin issued by the Trump family in partnership with 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 raised questions about whether Trump’s financial interests could influence US policy towards the UAE.
MGX is also a backer of AI juggernauts OpenAI and Anthropic.
The broad law also gives the UAE government, Abu Dhabi AI conglomerate G42 and its cloud site Core42 access to a license exception for certain advanced computing devices.
The Department of Commerce, in a statement, said it will “significantly improve the status of the United Arab Emirates” under export laws “recognizing the status of the UAE as a US Major Defense Partner and its support in advancing US 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 has secretly bought a 49% stake in Trump’s crypto company, World Liberty Financial.”
“It was also revealed that President Trump made $263 million related to this deal, which is a fraction of the $1.4 billion he earned from his crypto businesses last year alone,” Warren said, citing the president’s recent financial disclosures.
“Now, Trump’s Commerce Department is giving G42 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,” he said.
Warren, the ranking Democrat on the Senate Banking Committee, called on 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 on Friday called for a hearing on whether the UAE-linked investment in World Liberty influenced administration decisions on advanced chips, arms sales and other policies that benefit the country.
Kessler is already scheduled to testify next week before the House Foreign Affairs Committee.
There is no legal evidence that the UAE’s financial dealings with World Liberty influenced Commerce’s decision.
Amazon, an apple, Google, Meta, MicrosoftOpenAI, The Oracle and xAI will receive modified treatment from other regulated equipment used in UAE operations and data center projects under the new law.
The changes could speed up sales of the chips by reducing the need for separate export licenses, but they do not remove restrictions aimed at preventing sensitive technology from reaching unauthorized users or countries like China.
The law also eases the control of other military, satellite and spacecraft deployments.
