U.S. Senator Elizabeth Warren has escalated scrutiny on Beast Industries, the company behind internet star MrBeast (Jimmy Donaldson), over its acquisition of the teen-focused fintech app Step. In a letter dated March 23, Warren demanded that Donaldson and CEO Jeff Housenbold clarify their plans for the platform, particularly whether crypto or NFT services will be reintroduced to underage users. She set a deadline of April 3 for a response.
Step’s Troubled Crypto Past
Warren highlighted that Step once marketed itself as the first platform allowing teenagers to buy and sell bitcoin with parental consent, and facilitated access to altcoins and NFT purchases for users under 18. Although Step later warned that altcoins were “extremely risky and volatile” and NFT investing was “rife with scams,” Warren argued the company had already exposed minors to those very dangers. She stressed that any financial move by Beast Industries targeting young users must be carried out “with extreme care and full legal compliance.”
Evolve Bank Partnership Under Fire
The letter also zeroed in on Step’s continued relationship with Evolve Bank & Trust, a long-time partner. Citing court findings, Warren noted that up to $96 million in customer funds went missing during the 2024 Synapse collapse, a crisis involving Evolve. The Federal Reserve had issued an enforcement action against Evolve in 2024, and the bank also suffered a data breach. Warren questioned why Step stuck with Evolve and demanded assurances that teen users’ money will be protected under the new ownership.
Broader Regulatory Implications
Warren has long campaigned against crypto industry bailouts and warned of systemic risks to retail investors. Her latest move against Step signals that U.S. lawmakers remain highly sensitive to how digital assets are marketed to young people. If Beast Industries fails to provide satisfactory responses, the case could trigger further scrutiny of similar fintech products targeting minors, placing additional hurdles on crypto adoption in the youth banking space.