Trump admin export rule benefits UAE firm MGX
The Ministry of Commerce moved on Friday to ease export controls in the United Arab Emirates; This includes saying it will “favourably review” export license applications from UAE-backed investment firm MGX, which is using a stablecoin tied to President Donald Trump’s family for its $2 billion investment. Binance.
Unpublished version of a new book 17 page rule The document, which can be viewed in the Federal Register, includes a sentence that the Commerce Industry and Security Bureau is favorably reviewing applications involving MGX semiconductors and BAE-connected servers.
The rule is scheduled to be officially published on July 14.
Sen. Elizabeth Warren, a Massachusetts Democrat, quickly criticized the new rule because MGX uses a Trump-linked stablecoin, calling it “corrupt.”
MGX used USD1, a stablecoin issued by World Liberty Financial, affiliated with the Trump family, to complement its investment in Binance, the world’s largest crypto exchange by daily volume.
The transaction provided a significant 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 supporter of AI juggernauts OpenAI and Anthropic.
The broader rule also gives the UAE government, Abu Dhabi AI conglomerate G42 and its cloud subsidiary Core42 access to licensing exemptions for certain advanced computing equipment.
The Commerce Department said in a statement that it would “significantly elevate the status of the United Arab Emirates” under export regulations, acknowledging the UAE’s status as a Major Defense Partner of the United States and its support in advancing US national security interests, including Operation Epic Fury, the war against Iran.
“We already know that the UAE royal behind G42 and MGX secretly purchased a 49% stake in Trump crypto firm World Liberty Financial,” Warren said in a statement. he said.
“It was also revealed that President Trump received a $263 million windfall related to this deal, a fraction of the $1.4 billion he made from crypto ventures last year alone,” Warren said, referring to the president’s latest financial disclosure. he said.
“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,” he said.
Warren, the top Democrat on the Senate Banking Committee, called on Commerce Secretary Howard Lutnick and BIS Undersecretary 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 called for hearings earlier Friday into whether UAE-linked World Liberty investments are influencing administration decisions on advanced chips, arms sales and other policies that benefit the country.
Kessler is scheduled to testify before the House Foreign Affairs Committee next week.
There is no evidence in the rule that BAE’s financial dealings with World Liberty influenced Commerce’s decision.
Amazon, Apple, Google, Meta, MicrosoftOpenAI, Seer and xAI will see 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 banned users or countries such as China.
The rule also eases checks on some military, satellite and spacecraft-related exports.
