Former President Donald Trump’s cryptocurrency ventures are facing heightened scrutiny as House Democrats request an investigation into potential financial misconduct, including allegations of insider trading, foreign influence, and market manipulation.
The request, outlined in a detailed letter to Treasury Secretary Scott Bessent, raises concerns about the Trump-backed World Liberty Financial (WLF) and Trump-branded meme coins, questioning their legitimacy and financial transparency.
The Rise of Trump Crypto
Despite previously criticizing digital assets, Trump has emerged as a major player in crypto due to his direct influence in the industry. WLF, launched in September 2024, offers a governance token, but critics argue it lacks tangible value. The controversy deepened after reports surfaced that Chinese billionaire Justin Sun invested $75 million into WLF, sparking allegations of foreign influence.
Additionally, Trump’s $TRUMP meme coin, introduced days before his inauguration, has generated over $100 million in trading fees, largely benefiting entities tied to his family.
Insider Trading and Market Manipulation Concerns
Early trading of $TRUMP allegedly led to millions in profits for insiders, while smaller investors saw over $2 billion in losses following a price crash.
House Democrats worry that the coin’s structure enables pump-and-dump schemes, with wealthy individuals profiting while retail traders bear the risk.
The Democratic inquiry seeks access to suspicious activity reports on Trump-linked crypto transactions, aiming to determine whether laws were violated.
Regulatory Challenges Ahead
With the SEC relaxing oversight on meme coins inclined to consider these tokens as collectibles rather than assets or securities — questions remain about how Trump’s ventures will shape the regulatory landscape.
As the debate over crypto regulation intensifies, lawmakers will need to decide whether Trump’s financial moves are legitimate business ventures or political fundraising tools.
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