- Sen. Warren sent a March 23 letter to Beast Industries over Step’s crypto history.
- Warren requested clarity on whether crypto or NFT investing will return to Step by April 3.
- Step previously marketed crypto access to minors with parental consent.
- Warren flagged Evolve Bank & Trust’s regulatory issues tied to Synapse and a 2024 Fed action.
Senator Elizabeth Warren has written to Beast Industries, the company founded by YouTube personality Jimmy “MrBeast” Donaldson, demanding answers about Step, a teen-focused financial app the company acquired in March.
Warren’s letter, addressed to Donaldson as founder and CEO, gives Beast Industries until April 3 to respond to a series of questions about the app’s future features, its regulatory history, and its current banking arrangements.
The inquiry reflects growing congressional unease at the intersection of youth-oriented media brands and consumer financial products.
Crypto for Teens Under the Microscope
Step previously marketed itself as the first platform allowing teens to purchase Bitcoin with parental approval. Warren flagged that the app’s earlier promotions encouraged users under 18 to buy digital tokens and use them toward NFT purchases, marketing she described as raising “serious issues of securities regulation and consumer protection,” particularly given the audience.
Step had subsequently added risk disclosures, cautioning that alternative cryptocurrencies are “highly, highly, highly” risky and that NFTs carry significant exposure to widespread fraud. Warren’s letter asks directly whether Beast Industries plans to reintroduce crypto or NFT features following the acquisition.
Evolve Bank History Adds to Concerns
Warren also pressed the company on its choice of Evolve Bank and Trust as Step’s banking partner. Her letter cited a federal court finding that Evolve had “severely impacted” the failed fintech intermediary Synapse, resulting in depositor losses estimated between $60 million and $96 million.
She further noted that the Federal Reserve issued a consent order against Evolve in 2024 and that the bank suffered a significant data breach the same year. Warren asked Beast to confirm the full scope of its current banking partnerships and clarify whether any Step users face restrictions on account access or delayed withdrawals as a result of those relationships.
In a statement to Business Insider, Warren said that companies choosing to offer financial services off the back of media influence must do so “carefully and legally,” adding that young users are placing real trust, and real money, in these platforms.
Beast Industries has not publicly responded to the letter. The April 3 deadline will serve as an early indication of how the company intends to manage regulatory scrutiny as it expands into financial services.
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