The Commerce Department on Friday moved to ease export controls on the United Arab Emirates, including a specific provision pledging to "favorably review" export license applications involving MGX, the UAE state-backed investment firm that used a Trump family-linked stablecoin for its $2 billion investment in Binance.
An unpublished 17-page rule, viewable in the Federal Register, contains a single sentence directing Commerce's Bureau of Industry and Security to favorably review applications tied to MGX semiconductors and servers destined for the UAE. The rule is scheduled for official publication on Tuesday, July 14.
MGX completed its Binance investment using USD1, a stablecoin issued by World Liberty Financial, a crypto venture affiliated with President Donald Trump's family. The transaction represented a significant source of early business for the newly launched USD1 stablecoin and prompted questions about whether Trump's financial interests could shape U.S. policy toward the Gulf state.
The broader rule extends additional benefits to the UAE government, Abu Dhabi AI conglomerate G42, and G42's cloud subsidiary Core42, granting them access to license exceptions for certain advanced-computing equipment. Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle, and xAI would also receive streamlined treatment for some controlled equipment used in UAE operations and data center projects.
The Commerce Department said in a statement that the rule "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" — referring to military operations against Iran.
The rule does not eliminate existing restrictions designed to prevent sensitive technology from reaching prohibited end-users or countries, including China. It also loosens controls on certain military, satellite, and spacecraft-related exports.
MGX is also a backer of OpenAI and Anthropic, two of the most prominent AI development firms in the United States.
Sen. Elizabeth Warren, a Massachusetts Democrat and ranking member of the Senate Banking Committee, quickly condemned the decision. "We already know that the UAE royal behind G42 and MGX secretly bought a 49% stake in the Trump crypto company, World Liberty Financial," Warren said in a statement.
Warren added that 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," citing the president's recent financial disclosure. She went on to say that Commerce 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."
Warren called for Commerce Secretary Howard Lutnick and Bureau of Industry and Security Under Secretary Jeffrey Kessler to testify before Congress "to explain this corrupt deal and how it could put our national security at risk." Separately, Warren and other Senate Democrats earlier Friday called for hearings into whether UAE-linked investments in World Liberty Financial influenced administration decisions on advanced chips, arms sales, and other policies.
Commerce's rule contains no evidence establishing a direct link between the UAE's financial dealings with World Liberty Financial and the department's regulatory decision. Kessler is already scheduled to testify next week before the House Committee on Foreign Affairs.
The rule's publication next week will set the stage for congressional scrutiny of an increasingly tangled intersection of cryptocurrency, foreign investment, and U.S. technology export policy — with the scope of any legislative response likely hinging on what administration officials are willing to disclose.
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