In brief
- Sen. Elizabeth Warren urged Beast Industries to move cautiously as the firm created by MrBeast considers crypto for Step, a teen-focused mobile banking app.
- Before the company was acquired by Beast Industries, the senator argued that it pressured kids into asking their parents for permission to invest in crypto.
- Earlier this year, Beast Industries signaled an interest in DeFi after receiving a $200 million investment from Ethereum treasury firm BitMine.
Senator Elizabeth Warren (D-MA) requested information Monday regarding Beast Industries’ recent acquisition of Step, urging the company created by YouTube star MrBeast to move cautiously as it weighs crypto for the mobile banking app designed for young investors.
In a letter sent to Beast Industries CEO Jeff Housenbold and MrBeast—whose real name is Jimmy Donaldson—the crypto critic argued that the firm’s history “raises concerns about its ability to manage a financial technology company, particularly one targeting children and teens.”
The 12-page letter focuses on Step’s previous involvement in crypto. In 2022, the app announced that it had become the first platform in the U.S. to allow teens, with the consent of a parent or legal guardian, to purchase digital assets like Bitcoin. The company later advertised that it was expanding access to more than 50 digital assets, including NFTs.
The senator argued that the Step promoted “risky investments” on social media, while providing users with resources that allegedly encouraged kids to pressure their parents into allowing crypto investments through Step, including a script that was posted to YouTube.
Although Step backed away from crypto in 2024, Warren noted that Beast Industries has signaled its acquisition of Step could unlock opportunities with crypto and decentralized finance. Not long before, Beast Industries filed a trademark for “MrBeast Financial,” with language that mentioned crypto-based services for trading and payments using DeFi.
In a statement, a spokesperson for Beast Industries said that it appreciates Warren’s outreach, and the company plans on engaging with her as Step evolved under MrBeast. Warren’s letter put forth 11 different questions for the company to answer, which include procedures for accommodating users who lose funds due to fraud, scams, and cybersecurity failures.
“Our primary motivation behind this deal is to improve the financial future of the next generation,” they added. “We’re examining all existing offerings and marketing approaches to ensure that Step’s future is developed thoughtfully and deliberately, meets our very high quality standards, and is in compliance with applicable laws and regulatory requirements.”
With over 500 million across social media, Warren wrote that MrBeast’s fans are loyal and likely to place their “funds, savings, and financial futures” in the YouTube star’s hands.
Prior to acquiring Step, Beast Industries disclosed a $200 million from Ethereum treasury firm BitMine, which is chaired by Fundstrat co-founder Tom Lee. (Disclosure: Lee is an investor in DASTAN, the parent company of an editorially independent Decrypt.)
Warren’s scrutiny of Beast Industries centered on Step, but the company was also thrust into the conversation around prediction markets earlier this year after Kalshi said that it had taken an enforcement action against a video editor, who was then fired. Kalshi found that the employee in question had abused knowledge of MrBeast’s videos to conduct near-perfect trading.
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