Senator Elizabeth Warren, a ranking member of the U.S. Senate Banking Committee, has flagged Beast Industries’ acquisition of the Step fintech firm, which allows minors to invest in cryptocurrency.
On the 23rd of March, Sen. Warren sent a letter to YouTuber Jimmy Donaldson, popularly known as MrBeast, seeking disclosure and details on his company’s crypto investment plans for kids. The letter was also shared with Jeff Housenbold, the CEO at Beast Industries.
In February, Beast Industries acquired the Step financial app after $200 million in backing from Tom Lee-led BitMine Immersion Technologies, the world’s largest Ethereum treasury firm. In fact, Lee believed the move could make Step the ‘Robinhood’ for Gen Z and Gen Alpha.
The platform allows younger users to open and run an account under parental supervision.
However, Step’s alleged history of allowing children below 18 years to trade cryptocurrency and NFTs, among other claims, prompted Sen. Warren to call for more disclosure on certain issues.
Sen. Warren’s demands
Among other issues raised in the letter was Step’s partnership with Evolve Bank & Trust, which came under scrutiny after $96 million in customer funds reportedly vanished in 2024. Sen. Warren sought to understand how the bank was selected over others despite its questionable history.
Additionally, the lawmaker claimed that MrBeast has been previously accused of facilitating crypto pump-and-dump schemes
“Mr. Donaldson has been accused of unethical and potentially illegal behavior related to his dealings in cryptocurrencies.”
She also inquired if there are plans to create DeFi-related crypto content, whether Step will offer crypto services, and if past offerings went beyond Bitcoin.
She concluded,
Beast Industries is primarily an entertainment and consumer product company, with no reported prior experience offering financial services, investment services, or banking products. Now, its is entering a highly regulated market.
In response, a spokesperson at Beast Industries noted Sen. Warren’s letter and added,
We appreciate Senator Warren’s outreach and look forward to engaging with her as we build the next phase of the Step financial platform.
The lawmaker is a staunch crypto critic, citing the sector’s risks to the financial system and the overall harm caused by scams.
Final Summary
- Sen. Warren sought clarity on MrBeast’s plans for Step, especially regarding crypto investments for minors and related content.
- The lawmaker poked holes into Step partnership with a bank that reportedly vanished with $96M in customer funds.
