The Commerce Department on Friday moved toward easing export controls on the United Arab Emirates, including saying it would “favorably review” export license applications for MGX, the UAE-backed investment firm that used a stablecoin linked to President Donald Trump’s family to finance its $2 billion investment. Binance.
unpublished version of new 17 page rule Noticeable in the Federal Register includes a sentence about the Commerce Bureau of Industry and Security favorably reviewing applications involving MGX semiconductors and servers bound for the UAE.
The rules are due to be officially published on Tuesday, July 14.
Massachusetts Democrat Senator Elizabeth Warren immediately criticized the new rule, calling it “corrupt” due to MGX’s use of a Trump-connected stablecoin.
MGX used USD1, a stablecoin issued by Trump family-affiliated World Liberty Financial, to finance 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 US policy toward the UAE.
MGX is also a supporter of AI juggernauts OpenAI and Anthropic.
The sweeping rule gives the UAE government, Abu Dhabi AI group G42 and its cloud subsidiary Core42 access to license exceptions for certain advanced-computing equipment.
The Commerce Department said in a statement that it would “significantly upgrade the UAE’s status” under the export rules in recognition of the UAE’s status as a major US defense partner and its support in furthering US national security interests, including Operation Epic Fury, the war against Iran.
“We already know that the UAE royals behind G42 and MGX secretly purchased a 49% stake in the Trump crypto company, World Liberty Financial,” Warren said in a statement.
“It also turns out that President Trump made a massive $263 million windfall related to this deal, part of the $1.4 billion he earned from his crypto ventures last year alone,” Warren said, citing the president’s recent financial disclosures.
“Now, Trump’s Commerce Department is giving the G42 license-free access to advanced AI chips and promising favorable treatment for MGX, despite concerns about the transfer of sensitive technology to China and other national security risks,” he said.
Warren, who is 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 jeopardize our national security.”
Warren and other Senate Democrats had earlier called for a hearing Friday into whether UAE-linked investments in World Liberty influenced the administration’s decisions on advanced chips, arms sales and other policies benefiting the country.
Kessler is scheduled to testify before the House Committee on Foreign Affairs next week.
The ruling found no evidence that the UAE’s financial transactions with World Liberty influenced Commerce’s decision.
Amazon, Apple, Google, meta, MicrosoftOpenAI, Oracle And XAI will receive streamlined treatment for certain controlled equipment used in UAE operations and data center projects under the new rule.
The changes could speed up chip sales by reducing the need for separate export licenses, but they do not eliminate restrictions aimed at preventing sensitive technology from reaching restricted users or countries such as China.
The rule also eases controls on certain military, satellite and spacecraft-related exports.