The Democratic Party accuses the Trump family of building the "most corrupt encryption empire in the world"; what does it mean for the crypto world?

A report released by the Democratic members of the U.S. House Judiciary Committee has sent shockwaves through the crypto world, accusing the Trump family of turning the White House into "the most corrupt cryptocurrency startup in the world."

The report reveals that Trump and his family accumulated up to $11 billion in wealth through encryption in less than a year, with profits exceeding $800 million from crypto sales in the first half of 2025.
01 Core Allegations of the Report: The Interweaving of Political Power and Encryption Interests

This report released by Congressman Jamie Raskin paints a startling picture of the close intertwining of political power and the interests of encryption assets.

The report pointed out that the Trump family accumulated enormous wealth in a very short period through a series of encryption businesses, including World Liberty Financial and TRUMP meme coin.

These encryption holdings are estimated to be as high as $11.6 billion, with over $800 million in revenue generated from the sale of crypto assets in the first half of 2025.

02 Policy Impact: Regulatory Easing and Enforcement Termination

Foreign forces and corporate interests have gained regulatory leniency and policy benefits by funneling funds to Trump's family's encryption currency business.

Laskin's report details allegations that the Trump administration terminated federal investigations into several major encryption companies, including Coinbase, Gemini, Robinhood, and Ripple.

At the same time, the government also disbanded the national encryption currency law enforcement team of the Department of Justice and abolished the investor protection regulations from the Biden era.

03 The market has shown volatility: Trump's family wealth has significantly shrunk.

Despite the Trump family's accumulation of massive encryption wealth, recent market turmoil has led to a significant evaporation of their assets.

According to Bloomberg data, since September, the wealth of the Trump family has decreased by 1 billion dollars, mainly due to the collapse in cryptocurrency prices.

The TRUMP meme coin launched by Trump has fallen over 90% from its peak in January of this year, and the stock price of Trump Media & Technology Group is also nearing its all-time low.

04 The Impact on the Encryption Market: Short-term Volatility and Long-term Regulatory Risks

For the crypto market, this political development may have a dual impact.

On one hand, the report itself may generate short-term "headline risk," increasing market volatility, but no new legislation or enforcement actions have been announced.

Traders should view this as market noise unless they see specific progress on official reports, hearings, or subpoenas.

On the other hand, this event may accelerate the legislative process for encryption regulation. The Democratic Party is ready with several regulatory bills, including the "Ending Crypto Corruption Act."

05 Investors should be cautious of politically connected assets and pay attention to the fundamentals.

For investors, this political storm signals the need to be cautious of encryption assets that are highly associated with political figures.

The report named several encryption assets of the Trump family, including the token WLFI from World Liberty Financial and the TRUMP meme coin.

These assets may face greater scrutiny risks and price volatility.