Democrats are raising alarms over US President Donald Trump's increasingly close relationship with the cryptocurrency industry, accusing him of using his political influence to benefit himself and his family financially. Recent investigations indicate that Trump’s administration is appointing individuals supportive of digital assets to significant regulatory positions, such as Kevin Hassett, a senior economic adviser who reportedly holds shares in
Coinbase
and has long promoted favorable policies for digital currencies. Hassett, who led the White House’s digital asset task force, is now a top contender to succeed Jerome Powell as Federal Reserve Chair, even though
the Fed has only limited authority over crypto regulation
. The possibility of his appointment has sparked debate over whether Trump’s policies might be tailored to benefit the crypto sector through monetary policy changes.
The controversy is not limited to appointments. Trump’s family has reportedly profited significantly from cryptocurrency projects, most notably through
World Liberty Financial
(WLFI), a venture associated with the Trump Organization. Although the WLFI token has lost nearly half its value since its debut in January, the family has continued to buy back tokens in large quantities to support prices. In just one week,
$7.7 million was spent by the project
to acquire
WLFI
tokens, with ongoing buybacks designed to decrease supply and stimulate demand. These maneuvers coincided with a $5 billion valuation of the Trump family’s crypto assets, though their wealth reportedly dropped by over $1 billion after a major market downturn in October
as reported
.
House Democrats have begun formal inquiries into what they describe as a "pay-for-play" arrangement, alleging that crypto industry leaders and investors have contributed to Trump’s political organizations while receiving favorable regulatory treatment. The administration’s pardons of prominent figures such as Binance’s Changpeng Zhao and BitMEX executives have intensified suspicions of favoritism. "The United States has never witnessed corruption of this magnitude within the White House," stated Rep. Jamie Raskin, who leads the Judiciary Committee’s investigation
as reported by Bloomberg
. The investigation claims that both foreign and domestic actors have taken advantage of Trump’s crypto policies to sway US decision-making, with particular attention on WLFI’s USD1 stablecoin after
a 60 Minutes report linked it to a $2 billion Binance transaction
.
The White House has repeatedly defended Trump’s approach to cryptocurrency, highlighting its role in spurring innovation and boosting the economy. Press Secretary Karoline Leavitt has maintained that neither the president nor his family faces conflicts of interest, pointing to initiatives like the GENIUS Act as proof of widespread public benefit
according to Forbes
. Nevertheless, opponents argue that the administration’s close ties to the crypto industry could compromise regulatory standards. With the 2026 midterm elections on the horizon,
Democrats caution that Trump’s crypto-focused agenda may expose the sector
to political risks if their party regains control of Congress.
