MrBeast’s company bought a banking app that was marketing crypto directly to minors, and a senator is now asking whether any of it was even legal

Senator Elizabeth Warren has sent a letter to Beast Industries, the company behind YouTuber MrBeast, questioning its purchase of the banking app Step and its marketing of cryptocurrency to minors. Warren is raising concerns about the legality of an entertainment company moving into financial services, given that a large part of MrBeast’s audience is made up of children.

The twelve-page letter, asks for detailed information about Beast Industries’ February purchase of Step and its efforts to promote services to young users. Warren stated, “Despite Step’s careful claims that crypto investing by minors was only with the permission of a parent or guardian, Step published resources encouraging kids to pressure their parents into crypto investments.” On X, she simply wrote, “I have questions for MrBeast.”

The letter also looks closely at Beast Industries’ banking partner, Evolve Bank & Trust. According to Mediaite, it has previously faced enforcement actions from the Federal Reserve Board over problems with its anti-money laundering programs. Warren stressed that since Beast Industries is primarily an entertainment company, “any foray into financial services, particularly services aimed at children, must be done with great care and in compliance with the law.”

Beast Industries says its goal is to improve the financial future of young people, but regulators are not convinced

In a statement, Beast Industries said its main focus is on helping young people with their financial future. A spokesman for the company said they are focused on following the law and developing the app carefully. “Our primary motivation behind this deal is to improve the financial future of the next generation,” the spokesman wrote.

The company also explained its next steps, saying, “Now that we’ve completed the transaction and have ownership control, 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.”

Beast Industries added that they “appreciate Senator Warren’s outreach” and would be “engaging” with her on the Step project going forward. This is not the first time MrBeast’s productions have drawn public scrutiny, his 1000-player Minecraft video faced backlash over behind-the-scenes treatment of participants.

The main issue here is the potential marketing of cryptocurrency to children, who make up a large part of MrBeast’s audience. Cryptocurrency carries significant risks, particularly for those who do not fully understand financial markets, so any move to get minors involved is likely to attract regulatory attention.

Beast Industries is in a difficult position, as it has built its brand on connecting with a young audience, but now has to operate within the strict rules that come with offering financial services. Senator Warren has been looking into political controversies related to cryptocurrencies lately. She is now ready to take on the world’s biggest YouTuber in her fight to regulate crypto.