 ▲ Democrats target Trump’s ‘crypto empire’…Will it shift the midterm landscape? / ChatGPT-generated image |
As the U.S. midterm elections approach, cryptocurrency is emerging as a key political issue this year, with Democrats intensifying attacks on President Donald Trump’s crypto businesses.
According to DL News on March 13 (local time), Democrats have escalated their political offensive by targeting cryptocurrency ventures linked to President Trump and his family. In particular, Democratic figures argue that Trump-related stablecoin projects and decentralized finance businesses pose potential conflicts of interest and are calling for investigations.
In one notable case, Senator Elizabeth Warren called for an inquiry into major crypto businesses connected to the Trump family and simultaneously pushed for an investigation into Binance. The exchange is reported to hold about 90% of the stablecoins tied to Trump. Democratic strategists believe such attacks will intensify as the midterm elections draw nearer.
President Trump was originally critical of cryptocurrencies. In 2021, he denounced Bitcoin (BTC) as a “scam against the dollar,” but in 2024 he shifted his stance by declaring himself a pro-crypto candidate at an event held at Mar-a-Lago, Florida. The crypto industry subsequently donated approximately $10.5 million to his campaign, while about $71 million was reportedly spent supporting Republican candidates. In total, the industry contributed around $197 million to political campaigns during the election cycle.
Since returning to office, the Trump administration has pursued aggressive pro-crypto policies. Key measures include an executive order to establish a national cryptocurrency reserve, a ban on central bank digital currencies (CBDCs), and a pardon for Silk Road founder Ross Ulbricht. In addition, the passage of the GENIUS Act regulating stablecoins has accelerated efforts to institutionalize the market.
However, the Trump family’s crypto ventures remain at the center of controversy. Shortly before taking office, Trump and Melania Trump each launched meme coins, but their prices have since fallen 96% and 99% from their respective peaks. Meanwhile, World Liberty Financial, a flagship project, has applied for a banking license while seeking to expand its USD1 stablecoin. The project came under Democratic scrutiny after reports revealed that a United Arab Emirates (UAE) firm invested approximately $500 million.
Whether these political attacks will actually alter the electoral landscape remains uncertain. Some experts note that targeting Trump’s crypto businesses may not necessarily work to the Democrats’ advantage. The White House has denied all allegations of conflicts of interest, emphasizing that President Trump has made the United States the “world’s leading crypto hub.”
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