TD Cowen: Political Risks in the Crypto Industry are Rising, Trump's Family Crypto Investments May Undermine Regulatory Efforts

According to a report by Jinse, the Washington research group of TD Cowen, led by Jaret Seiberg, wrote that political risks in the crypto industry are rising as actions associated with U.S. President Donald Trump and his administration could undermine progress in crypto regulation. The report states: “Our concern is that political threats might intensify and eventually pose a threat to legislative and regulatory reforms for cryptocurrencies. Although we do not currently believe that political risks will derail Washington’s cryptocurrency agenda, this risk is increasing rather than decreasing. Therefore, we consider this a key factor for cryptocurrency investors to watch.” Legislators and regulatory bodies in Washington are currently making progress in cryptocurrency legislation and guidance. The U.S. Securities and Exchange Commission (SEC) has dismissed multiple cryptocurrency lawsuits, and legislators are proposing frameworks for the regulation of stablecoins and market structure. However, analysts indicate that the growing controversy over the Trump family's involvement in the cryptocurrency field, including planned stablecoins, could threaten this momentum. He wrote: “We are increasingly concerned about the escalation of political risks as actions by the Trump family business and administration could trigger backlash, thereby undermining the government’s positive actions.”