Elizabeth Warren scrutinizes MrBeast’s teen crypto banking plans after Step deal

Elizabeth Warren, the senior United States senator from Massachusetts, has expressed concerns about reports that Beast Industries acquired Step. This prominent financial technology company enables young individuals to allocate their funds in cryptocurrencies.

In the letter, the senator stated that “Beast Industries mainly focuses on entertainment and consumer products. Any move into financial services, especially those targeting children, needs to be approached very carefully and must follow the law.”

Warren stresses the need for maintaining caution in financial services aimed at minors

On February 9, 2026, Beast Industries announced its acquisition of Step, arguing that the move would enhance financial literacy and money management, particularly for young users. Interestingly, just after the announcement, analysts noted that Step permitted supervised, parental-guided account opening for minors.

Regarding this move, they mentioned that the company released a 2022 statement claiming it would establish an app that would allow teens under 18 and young adults to purchase, sell, hold, and receive cryptocurrency, while promising parents full oversight of teens’ access to these investments.

At this point, it is worth noting that Step positions its app as a tool for young adults and teens to effectively launch their financial journeys, offering services such as depositing money, building credit, and tracking expenses, even though it is not a bank. 

Meanwhile, when Beast Industries acquired Step, reports highlighted that the financial technology company had approximately seven million users. Regarding this figure, Donaldson alleged that the purchase was intended to provide millions of young people with the financial foundation he lacked while growing up.

He made this statement shortly after sources reported that MrBeast Financial submitted a trademark filing at the end of last year detailing plans for a mobile cryptocurrency exchange app.

On the other hand, analysts found that Donaldson has more than 472 million subscribers on YouTube, making it one of the platform’s most-followed accounts. 

Moreover, Beast Industries, his firm, has already secured a foothold within the crypto industry via a $200 million investment from BitMine Immersion Technology as of January this year.

This Las Vegas-based publicly traded company acts as a major Ethereum (ETH) treasury and Bitcoin (BTC) mining operator.

In the meantime, Warren argued that, “Although Step claims that minors can only invest in crypto with permission from a parent or guardian, they also provided resources encouraging kids to convince their parents to make crypto investments.” Therefore, she stressed that “Beast Industries is mainly an entertainment and consumer product company – any move into financial services aimed at children must be handled carefully and legally.” 

To underscore the urgency of the situation, the Senator set an April 3 deadline for the request she had earlier made to Donaldson and Housenbold. This deadline prompted several reporters to reach out to Beast Industries and Warren’s office for comment on the topic of discussion. However, none of them responded to the request.

Even so, reports highlighted that Warren raised concerns about Evolve Bank & Trust’s troubled history, which she used to bolster her argument. Regarding this history, the financial institution and company faced several key challenges, including a significant cybersecurity attack in 2024 and regulatory issues with other financial technology partners. At this point, sources noted that Step collaborated with Evolve to carry out its operations.

The cryptocurrency industry faces significant challenges 

Responding to Warren’s concerns about the acquisition reports of Beast Industries’ purchase of Step, a representative for Beast Industries shared an email statement.

In the email statement, the representative noted that, “Our main goal for this deal is to enhance the financial future of the next generation. Now that we have completed the deal and gained control of ownership, we are reviewing all current offerings and marketing strategies. This ensures that Step’s future develops carefully and purposefully, meets our high quality standards, and follows all relevant laws and regulations.” 

Meanwhile, regarding the challenges faced in the crypto industry, sources reported that Haliey Welch, known online as the “Hawk Tuah Girl,” an American internet personality who gained viral fame in June 2024 following a street interview video, has finally addressed the public after months of silence. This was after investors lost around $200,000 due to her meme coin launch. 

Following the incident, reports highlighted that Welch had received death threats after her HAWK meme coin, which many believed was a scam, crashed by over 90% following a peak market value of $500 million.

Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.