The US Commerce Department moved Friday to ease export controls on the United Arab Emirates, including a provision stating it will 'favorably review' export license applications for MGX, the UAE-backed investment firm that used a stablecoin linked to President Donald Trump's family for its $2 billion investment in Binance. An unpublished 17-page rule viewable in the Federal Register includes one sentence about Commerce's Bureau of Industry and Security favorably reviewing applications involving MGX semiconductors and servers bound for the UAE, with official publication scheduled for Tuesday, July 14. Sen. Elizabeth Warren, a Massachusetts Democrat, quickly blasted the new rule, calling it 'corrupt' because of MGX's use of USD1, a stablecoin issued by the Trump family-affiliated World Liberty Financial, to complete its Binance investment. The broader rule gives the UAE government, Abu Dhabi AI conglomerate G42, and its cloud subsidiary Core42 access to license exceptions for certain advanced-computing equipment, with Commerce citing the UAE's status as a US Major Defense Partner and its support in advancing US national security interests, including Operation Epic Fury.
Commerce Announces Favorable Review for MGX Semiconductor Applications
The Commerce Department stated it will 'favorably review' export license applications involving MGX semiconductors and servers destined for the UAE. MGX is also a backer of AI juggernauts OpenAI and Anthropic. The transaction that raised scrutiny provided a major source of business for the newly launched USD1 stablecoin. The Commerce Department, in a statement, said that it '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,' the war against Iran.
Warren Demands Congressional Testimony on Export Rule
Warren, in a statement, said, 'We already know that the UAE royal behind G42 and MGX secretly bought a 49% stake in the Trump crypto company, World Liberty Financial.' She cited the president's recent financial disclosure, stating, 'It was also just revealed that President 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.' Warren, who is the ranking Democrat on the Senate Banking Committee, called for Commerce Secretary Howard Lutnick and BIS Under Secretary 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 earlier Friday called for hearings into whether UAE-linked investments in World Liberty influenced administration decisions on advanced chips, arms sales and other policies benefiting the country. Kessler is already scheduled to testify next week before the House Committee on Foreign Affairs.
UAE Gains License Exceptions for Advanced Computing Equipment
The broader rule gives the UAE government, Abu Dhabi AI conglomerate G42, and its cloud subsidiary Core42 access to license exceptions for certain advanced-computing equipment. Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle, and xAI would receive streamlined treatment for some controlled equipment used in UAE operations and data center projects under the new rule. The changes could speed chip sales by reducing the need for separate export licenses, but they do not eliminate restrictions intended to prevent sensitive technology from reaching prohibited users or countries such as China. The rule also eases controls on some military, satellite, and spacecraft-related exports. There is no evidence in the rule that the UAE's financial dealings with World Liberty influenced Commerce's decision.
FAQ
What did the US Commerce Department announce on Friday regarding UAE export controls?
The Commerce Department moved Friday to ease export controls on the United Arab Emirates, including stating it will 'favorably review' export license applications for MGX semiconductors and servers bound for the UAE. The 17-page rule is scheduled for official publication on Tuesday, July 14, and gives the UAE government, G42, and Core42 access to license exceptions for certain advanced-computing equipment.
Why did Sen. Elizabeth Warren call the Commerce Department's new UAE export rule 'corrupt'?
Warren called the rule 'corrupt' because MGX used USD1, a stablecoin issued by the Trump family-affiliated World Liberty Financial, to complete its $2 billion investment in Binance. She cited Trump's recent financial disclosure showing he made $263 million related to this deal and demanded that Commerce Secretary Howard Lutnick and BIS Under Secretary Jeffrey Kessler testify before Congress to explain the rule and its national security implications.
