Prime Home Democrats have launched an inquiry into President Donald Trump’s crypto ventures, citing considerations over doubtlessly unlawful fundraising, international affect, and abuse of political energy.
Consistent with this, they’ve requested all suspicious exercise studies (SARs) related to Trump’s fundraising efforts.
The Allegations
In a letter to Treasury Secretary Scott Bessent, Democrats Gerald Connolly, Joseph Morelle, and Jamie Raskin, senior members from three Home committees, mentioned:
“We write relating to the potential misuse of sure politically oriented fundraising ventures for fraudulent, corrupt, or different unlawful functions.”
The inquiry targets the Republican fundraising platform WinRed, a number of political motion committees, together with Elon Musk’s America PAC, the Trump household’s World Liberty Monetary (WLF), and meme cash linked to the president and first girl.
The lawmakers had been particularly all for World Liberty’s WLFI token sale. After failing to fulfill preliminary fundraising targets, WLF received a $75 million buy from Justin Solar. The Tron founder has been underneath SEC scrutiny since 2023 however just lately secured a pause within the case as discussions with regulators continued, elevating suspicions of bribery.
The Home Democrats additionally talked about the TRUMP and MELANIA meme cash. Based on them, entities affiliated with the president management 80% of the previous’s provide and have earned over $100 million in buying and selling charges.
Foreigners, some allegedly Chinese language nationals, are additionally mentioned to have made substantial income promoting the meme token early, whereas later traders misplaced greater than $2 billion. These patterns have fueled accusations of doable insider buying and selling and pump-and-dump exercise.
The letter additionally addresses considerations about nationwide safety and international affect, provided that coin consumers stay nameless and most WLF tokens had been offered to international traders. Connolly and firm argued that this left room for non-natives to probably achieve affect over U.S. coverage.
In March 2025, WLF announced plans to launch a stablecoin referred to as USD1. Later, a fund backed by Abu Dhabi revealed it could use the stablecoin for a $2 billion funding within the Binance crypto alternate, which was beforehand convicted of violating U.S. anti-money-laundering legal guidelines.
The letter highlights that the timing and nature of this deal present the risks of Trump’s conflicts of curiosity and the ethics of blending enterprise and presidential energy.
Trump Faces Ongoing Scrutiny
The three legislators are demanding that every one related SARs from January 1, 2023, to the current be made accessible to their committees by Might 30. Their request comes amid elevated stress from Democrats in search of to manage political involvement in crypto.
Final week, Rep. Ritchie Torres launched a invoice to ban sitting presidents and members of Congress from profiting off meme cash and stablecoins. In April, Senators Elizabeth Warren and Adam Schiff additionally referred to as for an ethics probe after a Trump-hosted gala dinner promised unique invites for high holders of his Solana-based meme coin.
Individually, Congress voted down the GENIUS Act, a invoice that goals to manage stablecoins, citing unresolved conflicts linked to Trump’s crypto dealings.
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