Sen. Elizabeth Warren (D-Mass.) and 10 other Democratic members of Congress today urged the Federal Trade Commission to investigate Trump Mobile's broken promises related to Trump phone delivery dates and claims that it is "made in the USA."
The request isn't likely to get very far. Trump declared early in his second term that independent agencies like the FTC may no longer operate independently from the White House, and FTC Chairman Andrew Ferguson has backed Trump's claim of authority over historically independent agencies. The Supreme Court appears likely to approve Trump's firing of an FTC Democrat, giving him expanded power over the agency.
The letter, led by Warren and other lawmakers, was sent to Ferguson. "We write today regarding questions about false advertising and deceptive practices by Trump Mobile, and to seek information on how the Federal Trade Commission (FTC) intends to address any potential violations of consumer protection law given the inherent conflicts of interest presented by the company’s relationship to President Donald Trump," the letter said.
Pakistan has partnered with a company affiliated with Trump-linked World Liberty Financial (WLFI) to explore innovation in digital finance and the use of stablecoins for cross-border transactions.
Pakistan To Explore USD1 For Cross-Border Payments
On Wednesday, Pakistan announced it had signed a memorandum of understanding (MoU) with a crypto firm linked to the Trump Family’s main crypto business, World Liberty Financial.
According to a report by Reuters, the Pakistan Virtual Asset Regulatory Authority (PVARA) entered an agreement with SC Financial Technologies, a firm described as an affiliated entity of WLFI, to explore the use of its USD1 stablecoin for cross-border payments.
The memorandum is set to enable “dialogue and technical understanding around emerging digital payment architectures,” and was announced during WLFI founder and CEO Zach Witkoff’s visit to Pakistan.
Notably, Witkoff is also the CEO of SC Financial Technologies, which co-owns the USD1 stablecoin brand alongside World Liberty Financial, according to documentation on the stablecoin’s reserves reviewed by the news media outlet.
Under the agreement, the WLFI-linked company will collaborate with Pakistan’s central bank to integrate its USD 1 stablecoin into a regulated digital payments structure. A source involved in the deal detailed that this would allow the token to operate alongside Pakistan’s own digital currency infrastructure.
It’s worth noting that PVARA officials have previously affirmed that the country will launch a national stablecoin as part of its strategy to modernize payments and support tokenized debt. Additionally, the central bank is developing a pilot for a central bank digital currency (CBDC).
“Our focus is to stay ahead of the curve by engaging with credible global players, understanding new financial models, and ensuring that innovation, where explored, is aligned with regulation, stability, and national interest,” said Pakistan’s Finance Minister Muhammad Aurangzeb.
WLFI Faces New Conflict Of Interest Concerns
The news comes as WLFI faces some scrutiny in the US. On Tuesday, US Senator Elizabeth Warren sent a letter to Comptroller of the Currency (OCC), Jonathan Gould, pressing the agency to halt its review of the bank charter application submitted by the Trump-linked company.
On January 7, World Liberty Financial applied with the OCC to operate as a national trust bank purpose-built for stablecoin services in the US. The move is intended to facilitate the issuance of WLFI’s USD1 stablecoin. Moreover, it would allow the crypto company to provide custodial banking services and gain access to national payment networks under the OCC’s supervision.
The democratic senator cited fears she expressed in July, when she told newly appointed Jonathan Gould that “the OCC may soon be in the position where it has to review a stablecoin issuer application submitted by a company directly tied to President Trump and his family and to draft regulations that clearly influence the President’s finances.”
Unlike most of his predecessors, President Trump has not put his crypto ventures in a trust managed by an independent party, an October investigation stated, pointing out that instead, most of his businesses are owned by a revocable trust, of which he is the sole beneficiary, and managed by his son Donald Trump Jr.
According to the Tuesday letter, Warren’s concerns have gone from being “hypothetical,” as Gould reportedly called them, to being a reality. The senator argued that if the application is approved, the OCC would promulgate rules that “influence the profitability of the President’s company” and would also be responsible for “directly supervising and enforcing the law against the President’s company—and its competitors.”
Therefore, Warren requested that the OCC delay World Liberty Financial’s review until US President Donald Trump divests and eliminates all financial conflicts of interest involving himself or his family members and the company.
While a senator presses the Securities and Exchange Commission (SEC) against Bitcoin (BTC) and other cryptocurrencies in 401(k) plans, Bitwise’s CEO has defended the Trump administration’s push to allow digital assets’ inclusion in retirement funds.
Hougan Slams Bitcoin Restrictions In 401(k)s
On Monday, Bitwise CIO Matt Hougan discussed whether 2026 will be the year investors can own Bitcoin and other cryptocurrencies in 401(k) plans, as the inclusion of digital assets is becoming more common in individual retirement accounts (IRAs).
In an interview, the executive argued that providers are “slow to move,” but noted that the Trump administration’s pro-crypto shift, which removed “what was effectively a ban on Bitcoin from 401(k)s,” has opened the doors.
Hougan pointed out that large firms like Vanguard had strong restrictions but have recently relaxed their stance on Bitcoin investments. He argued that these bans are “ridiculous,” calling BTC “just another asset” that is no more volatile than stocks, such as those of Nvidia.
Does it go up and down? Absolutely. Is there risk in it? Absolutely. But it’s actually less volatile over the last year than Nvidia stock. And you don’t see any rules about banning 401k providers from offering Nvidia stock. That’s not that would seem ridiculous.
Recent K33 Research data showed that Bitcoin recorded the least volatile year in the asset’s history in 2025. Notably, BTC registered its lowest volatility level last year, with just 2.24%.
“So, I don’t know if the 401(k) providers will get all the way to the point of actually putting it in this year. These are very slow moving institutions, but we’re moving in that direction and eventually it’ll be normalized like other assets, which is how it should be treated,” he concluded.
Senator Warren Issues New Warning
Bitwise CEO’s remarks came as Democratic Senator Elizabeth Warren reached out directly to SEC chairman Paul Atkins to question how the Commission intends to protect investors from potential financial risks now that crypto investments are allowed in retirement plans.
As reported by Bitcoinist, the Department of Labor (DOL) rescinded in May a 2022 guidance that discouraged fiduciaries from including cryptocurrency investments in 401(k) retirement plans.
Months later, US President Donald Trump signed an Executive Order (EO) that aimed to allow more private equity, real estate, cryptocurrency, and other alternative assets in 401(k) retirement accounts.
The EO, signed on August 7, 2025, directed the DOL and the SEC to reduce regulatory barriers that prohibited investments in alternative assets in their defined contribution retirement plans.
In a new letter, the anti-crypto senator shared her concerns, cautioning that allowing Bitcoin and other crypto assets into these accounts could enable significant risks. She listed the “volatility associated with cryptocurrencies, the lack of market transparency, and potential conflicts of interest” as reasons to be cautious about introducing these assets into retirement plans.
She also emphasized that 401(k) plans are a vital source of retirement security for most Americans. Therefore, they should not be treated as a “playground for financial risk” that could put investors in vulnerable positions.
Despite Warren’s warnings, multiple US lawmakers have supported the Trump Administration’s efforts. In September, nine House members asked Atkins to provide “swift assistance” in implementing the president’s executive order and work with the DOL to protect workers.
Later, House of Representatives member Troy Downing proposed a bill to codify Trump’s directive, giving “the force and effect of law” and making it easier for investors to access Bitcoin and other alternative assets in their 401(k) retirement plans.
The IRS is weeks away from the start of a busier-than-usual filing season. But a group of senators is warning that the agency may be stretched too thin after losing more than a quarter of its employees.
Sen. Elizabeth Warren (D-Mass.), a member of the Senate Finance Committee, and Sen. Angus King (I-Maine) led 15 other senators in a Dec. 21 letter raising concerns about the start of the IRS filing season.
The letter, addressed to Treasury Secretary Scott Bessent — who is also serving as acting IRS commissioner — and IRS Chief of Taxpayer Services Ken Corbin, states the 2026 tax filing season “will present a huge test for the IRS.”
“We write with serious concerns that the Internal Revenue Service (IRS) is not prepared for the upcoming tax filing season and that American taxpayers may face delays and difficulties in filing their tax returns and receiving their tax refunds,” the senators wrote.
All senators on the list are Democrats, except for King and Sen. Bernie Sanders (I-Vt.) — both of whom caucus with Senate Democrats.
A recent report from the Treasury Inspector General for Tax Administration found these staffing cuts will make it more difficult for the IRS to detect fraud, process tax returns, and provide tax help over the phone and in-person at its Taxpayer Assistance Centers.
The TIGTA report also raises concerns that staffing cuts in the IRS’s IT department are delaying the agency’s ability to modernize its systems, including an initiative to digitize much of its paper-based workload.
“Taxpayers deserve to have the information and assistance they need to file their taxes and receive their refunds in a timely manner,” the senators wrote. “The Trump administration’s relentless attacks on the IRS threaten its ability to serve the public and undercut its mission to provide taxpayers with top-quality service and ensure that our tax laws are enforced with integrity and fairness.”
The IRS paused its IT modernization efforts in March. But internal documents show the agency is planning to modernize a more than 50-year-old IT system that’s critical to its work every filing season.
Internal documents obtained by Federal News Network show the agency is working on a “future state” of its Integrated Data Retrieval System (IDRS), a massive clearinghouse of taxpayer data.
IDRS allows IRS employees to review an individual’s tax information when they call asking for help, or send tax notices to individuals. The system also makes it possible for taxpayers to track the status of their federal tax return refund check.
The IRS expects that this modernization project, once complete, will make it much easier for employees to retrieve a taxpayer’s records when they contact the agency asking for help.
The internal documents show the IRS is working with several tech companies on this project, including Salesforce, Amazon Web Services and Palantir.
IRS employees were told last summer that layoffs were off the table. But during the recent government shutdown, the Treasury Department sent reduction-in-force notices to nearly 1,400 IRS employees.
Employees affected included those working in tax enforcement, IT and human resources. Those RIFs were rescinded, but layoff protections contained in a stopgap spending bill are set to expire on Jan. 30.
The agency lacks a permanent commissioner. Seven acting commissioners led the agency last year. Former congressman Billy Long, President Donald Trump’s first permanent pick to lead the agency, stepped down last August.
During his two-month tenure at the IRS, Long fell out of step with senior Treasury officials on several decisions. Those included rescinding RIFs within its Office of Civil Rights and Compliance, announcing that Direct File was “gone” months ahead of the agency’s official announcement, and stating the 2026 filing season would begin in mid-February, later than usual, to give the IRS workforce more time to prepare.
The IRS has not yet announced the start date of this year’s filing season. Federal News Network has reached out to the Treasury Department and the IRS for comment.
National Taxpayer Advocate Erin Collins, in her mid-year report to Congress last summer, said this year’s filing season was “largely successful.” But taxpayers may see delays during the 2026 filing season, given major staffing cuts.
This year’s filing season will be busier than usual. The IRS must update dozens of federal tax forms to reflect changes made under the One Big Beautiful Bill Act.
The IRS, as part of its fiscal 2026 budget request, said it needs to hire 11,000 call center representatives to “maintain” its current level of phone service. Without those hires, the agency warned it would only be able to answer about 16% of phone calls during next year’s filing season.
The IRS in July put out hiring notices to fill 4,500 full-time contact service representative jobs, but quickly pulled down those notices from USAJobs.
Term appointments generally don’t count toward career tenure, making it harder for employees to qualify for certain competitive service rights or transfer opportunities.
The Trump administration proposed giving the IRS more than $850 million to help the IRS hire those employees and roll out new automation tools to assist taxpayers.
But the House Appropriations Committee advanced its fiscal 2026 spending bill without these funds — and deeper overall IRS budget cuts than what the administration proposed.
Impacted employees say they have few details about what work they’ll be doing, reportedly advised by the agency to instead “focus on completing an orderly transition of your current work.” The notice they received states that they will no longer be working on IRS IT projects.
According to the notice, obtained by Federal News Network, the reassignments went into effect on Dec. 28.
Employees who received the email have until Jan. 9 to complete an “orderly transition.” That includes wrapping up current work, offloading assignments and supporting project handoffs.
Employees in question have been told that their reassignment is “permanent realignment out of the CIO organization,” but the move to the Office of the Chief Operating Officer is temporary. The agency’s HR office is looking to reassign the employees to jobs across the IRS and Treasury.
Reassigned employees are being asked to upload their resumes no later than Jan. 23, 2026.
The agency’s acting chief human capital officer told staff in a memo that keeping the IRS open would allow employees to “continue to work mission-critical efforts.”
Sen. Elizabeth Warren, D-Mass., speaks as Secretary of Health and Human Services Robert F. Kennedy Jr., appears before the Senate Finance Committee, on Capitol Hill in Washington, Thursday, Sept. 4, 2025. (AP Photo/Mark Schiefelbein)
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