Gate News reports that U.S. Senator Elizabeth Warren has asked Jimmy Donaldson (also known as MrBeast) and Jeff Housenbold, CEO of Beast Industries, to explain the reasons behind the acquisition of the crypto investment app Step, which targets minors. The app previously provided word-for-word scripts guiding teenagers on how to persuade their parents to buy cryptocurrencies like Bitcoin and Ethereum, raising regulatory concerns.
Step claims to have about 7 million users and, in 2022, offered cryptocurrency trading services for minors through Zero Hash LLC, allowing purchases of Bitcoin, over 50 other tokens, and NFTs with parental or guardian consent. Although Step states its investment activities are for educational purposes, the scripts and toolkits it provided have been criticized for potentially bypassing parental approval and posing compliance risks.
After MrBeast acquired Step in February 2026, most videos on the app’s YouTube account were set to private, but some cached content showed that teenage investment guidance scripts were still accessible as of December 2024. The acquisition was facilitated with help from Bitmine’s Ethereum company, and Beast Industries completed the deal after receiving a $200 million investment from Bitmine. However, Bitmine had previously experienced losses on Ethereum investments, even exceeding the losses suffered by FTX customers.
MrBeast’s YouTube channel has over 470 million subscribers, with approximately 39% of viewers aged 13 to 17, indicating a high proportion of young audiences. This has heightened concerns about the risks of minors engaging in crypto investments. By the end of 2025, Beast Holdings LLC filed a trademark application for MrBeast Financial, covering cryptocurrency trading and decentralized trading services.
Senator Warren has demanded that Donaldson respond to inquiries by April 3, 2026, explaining why the Step acquisition involved crypto investments by minors and what compliance measures were taken. Analysts suggest this review could influence regulations on crypto apps aimed at youth and highlight the industry’s challenge in balancing protections for minors with educational investment opportunities.
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