With Democrats winning a majority in both houses of Congress in the midterm elections, they have pledged to investigate the Trump family and their ties to the crypto industry, and crypto executives are bracing for tighter congressional scrutiny. Robert Garcia, who will chair the House Oversight Committee in January, said the investigation will include the Trump family and their crypto business profits.
Trump earned over $1.16 billion last year from cryptocurrency sales and token royalties, a significant portion of which came from his family-owned project, World Liberty Financial. This project will be a key focus of scrutiny by a Senate investigation committee, tentatively led by Senator Richard Blumenthal. World Liberty has stated that Trump has not been involved in the company's affairs since taking office.
With Democrats controlling both houses of Congress, they will be able to invoke subpoena power and ignore them, potentially facing civil or criminal penalties. Ron Hammond, head of policy and advocacy at Wintermute, stated that companies considered significant donors to Trump or his projects should be prepared for scrutiny.
The crypto industry has poured nearly $200 million into the Fairshake Super PAC and another Tether-backed PAC, but it has suffered defeats in several elections it supports. Fairshake's funders include Coinbase, Ripple, and a16z.
Joshua Riezman, Chief Legal and Strategy Officer at GSR, stated that the pressure from the new Congress on the crypto industry will be real, and its demands will differ from the previous Congress. However, as Congress gains a deeper understanding of the crypto industry, investigations are expected to be more targeted, distinguishing between benign and unscrupulous players within the sector. (Source: Financial Times)
