Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee, is raising concerns about Beast Industries’ acquisition of the financial technology company Step, which previously allowed minors to invest in cryptocurrency.
In a letter sent Monday, Warren requested more information from Jimmy Donaldson — the YouTuber with more than 470 million subscribers — and Beast Industries CEO Jeff Housenbold.
“Beast Industries is primarily an entertainment and consumer product company – and any foray into financial services, particularly services aimed at children – must be done with great care and in compliance with the law,” Warren said in the letter obtained by The Block.
Beast Industries acquired Step in February. The company says its mission is to make financial literacy and money management more accessible, particularly for younger users. Step allows individuals under 18 to open a bank account with parental supervision. While it is not a bank itself, Step markets its app as a way for teens and young adults to begin their “financial journeys,” offering tools to deposit money, track spending, and build credit.
Reportedly, in 2022, through a partnership with Zero Hash, Step allowed people under 18 to buy, sell, hold, and receive cryptocurrency, as well as NFTs.
Warren, a longtime critic of cryptocurrencies, has consistently raised concerns about consumer protection, financial risk, and the lack of regulatory oversight in the sector. She noted that roughly 39% of Donaldson’s audience is between the ages of 13 and 17 and pointed to his growing interest in crypto and decentralized finance.
When asked about the letter, a spokesperson for Beast Industries said its main motivation behind acquiring Step was to “improve the financial future of the next generation.”
“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,” they said.
“We appreciate Senator Warren’s outreach and look forward to engaging with her as we build the next phase of the Step financial platform,” they added.
In her letter, Warren also raised concerns about Step’s partnership with Evolve Bank & Trust, which faced turmoil after customer funds went missing in 2024, according to The Wall Street Journal.
Warren asked Donaldson and Housenbold specifically for information about whether Beast Industries plans to allow Step users to invest in crypto or NFTs, how it plans to advertise Step, and how it plans to protect users’ funds, among other questions. Warren requested a response by April 3.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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