Trump's Crypto Project Faces Fierce Democratic Attacks, Midterm Elections May Be Stirred Up Again by "Crypto Politics"

March 13 News: As the 2026 U.S. midterm elections approach, Democrats are focusing on cryptocurrency issues as a new political offensive. Crypto projects involving President Trump and his family have become primary targets for criticism. Several Democratic lawmakers have publicly called for investigations into related companies, alleging potential conflicts of interest and political profiteering.

In February, key Democratic figures like Senator Elizabeth Warren demanded regulatory agencies investigate a major crypto firm linked to the Trump family, questioning the nearly 90% token concentration in a large stablecoin issuance structure. Democratic strategists say that as the election cycle progresses, debates over digital asset regulation, political ethics, and financial transparency are expected to intensify.

G. Clay Miller, partner at digital asset consulting firm Penrose Partners, noted that during election cycles, politicians tend to emphasize differences between policies and personal wealth to motivate their supporters. He believes that discussions about crypto regulation are increasingly intertwined with legislation like the Clarity Act, making cryptocurrency a key battleground in political debates.

Notably, Trump initially criticized Bitcoin but shifted to openly support the crypto industry during the 2024 campaign, urging supporters to “vote for Trump if you support cryptocurrencies.” Subsequently, the crypto industry donated over $10 million to his campaign team and invested about $71 million in Republican candidates during the same election cycle.

After returning to the White House, Trump promoted several digital asset policies, including establishing a national crypto reserve, restricting central bank digital currency issuance, and signing legislation related to stablecoins. These policy changes have rekindled risk capital interest in the crypto market and prompted Wall Street firms to expand their digital asset investments.

Meanwhile, controversies continue around crypto projects launched by the Trump family. For example, two memecoins they released have fallen significantly from their all-time highs. More attention has been drawn to the DeFi project World Liberty Financial, built on Ethereum and planning to launch a USD-pegged stablecoin.

Recent media reports revealed that a company from the UAE invested about $500 million to acquire approximately 49% of World Liberty Financial, prompting Democrats to demand investigations into the transaction’s background. Elizabeth Warren called the DeFi project “utter corruption” and pushed for congressional review.

However, some legal experts believe politicizing World Liberty Financial may not be a wise strategy. Ishmael Green, partner at Bochner PLLC, stated that from a financial perspective, foreign investment in stablecoin projects could help increase demand for U.S. Treasury bonds.

The White House denied allegations of conflicts of interest, asserting that the Trump administration is promoting policies to make the U.S. a global leader in digital asset innovation. As crypto policies and election politics continue to intertwine, whether this issue will influence the 2026 midterm elections remains to be seen.