TRUMP Coin Crashes Over 15% as Democrats’ Midterm Win Paves Way for Crypto Probe

The Official Trump (TRUMP) token has dropped more than 15% over the past 24 hours, trading near $1.27. CoinGecko data shows that the cryptocurrency reached a record low of $1.22 following the Democratic Party’s capture of both congressional chambers in the U.S. midterms.

Selling momentum picked up yesterday as election outcomes materialized. Within hours, Democrats slated to take charge of key congressional committees announced intentions to probe Trump’s family cryptocurrency enterprise, prompting traders to begin factoring in the potential fallout.

Trump-linked Assets Fell While Bitcoin Pushed Past $80K

Aside from the TRUMP token, yesterday’s election results and the ensuing investigation reports weighed heavily on other family-associated assets. The World Liberty Financial WLFI token decreased by approximately 6% yesterday, while the MELANIA token recorded a nearly 13% drop. Additionally, Trump Media & Technology Group—the Truth Social parent company—hit a record low of $5.03, and the leveraged stock ETF DJTU slumped 32%.

Meanwhile, the broader market trended upward, with Bitcoin recovering past $80,000 and the aggregate crypto market capitalization gaining over 3%. This news has sparked a wave of contagion affecting Trump-affiliated assets.

Democrats are Preparing Probes in Both Chambers

Rep. Jamie Raskin, positioned to head the House Judiciary Committee, has outlined plans to examine suspected self-dealing within Trump’s crypto ventures alongside presidential pardons issued to specific law firms and donors. Rep. Robert Garcia, anticipated to lead the House Oversight Committee, likewise intends to investigate Trump’s crypto associates and operations, offering a succinct two-word message on election night: “Lawyer up.” Concurrently, Sen. Elizabeth Warren, in line for the chairmanship of the Senate Banking Committee, indicated she will conduct an exhaustive review of the family’s digital asset business.

World Liberty Financial Sits at the Center of it

In January 2025, Abu Dhabi-based entity Aryam Investment 1—supported by Sheikh Tahnoon bin Zayed Al Nahyan—agreed to acquire an unclosed 49% share in the company for $500 million. Representatives from G42 secured seats on the World Liberty board as part of the agreement, positioning Aryam as its primary external stakeholder.

Weeks ahead of the announcement regarding the U.S.-UAE artificial intelligence chip framework, another firm led by Tahnoon, MGX, utilized World Liberty’s USD1 stablecoin to finalize a $2 billion investment into Binance. Democrats view this sequence of events as a national security concern. The pardon of Binance founder Changpeng Zhao is also included on their inquiry agenda.

TRUMP carries its own controversies. A 2025 correspondence from Sen. Richard Blumenthal highlighted pump-and-dump price volatility and claimed a select group of insiders secured substantial profits from the token’s debut. That letter followed promotional efforts by Fight Fight Fight for a private dinner with the president reserved for top token holders.

Reuters calculations suggest the family has generated at least $2.3 billion from cryptocurrencies since the inauguration, with World Liberty contributing over $1.4 billion and the memecoin adding another $616 million. Investor losses mirror approximately that same valuation.

Subpoena Power Arrives in January

For two years, Democratic lawmakers have issued non-binding letters. That dynamic shifts when the 120th Congress convenes in January 2027, granting committee leaders the legal authority to subpoena documents and compel testimony. The initial step is anticipated to be an oversight hearing examining the full scope of Trump’s digital asset activities.

Democrats anticipate the administration will invoke executive privilege, mirroring actions from Trump’s initial term. Consequently, their strategy involves bypassing the White House to subpoena private organizations directly. Entities like World Liberty and Fight Fight Fight would be required to produce records.

Price volatility has consistently accompanied owning TRUMP or WLFI. Documentation detailing purchasers and acquisition timelines could likewise soon enter the public record.

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