Following the November 2024 elections, US President Donald Trump, who has been the focus of global attention, has also attracted the attention of the cryptocurrency sector.
Trump, who has been in the spotlight for his actions regarding Bitcoin and cryptocurrencies, faces a new political test with the upcoming midterm elections. With less than a month to go until the US Congressional elections, the Democrats are considered strong and are seen as leading in both the House and the Senate.
At this point, according to Reuters, a Democratic victory in the Senate or House of Representatives in the November midterm elections could intensify congressional investigations into cryptocurrency companies and prediction markets.
According to Reuters, a potential Democratic victory, while not directly ending the Trump administration’s policies of loosening financial regulations, could increase political and legal pressure on the sector.
Congress’s Investigative Powers May Expand!
At this point, a Democratic majority in the Senate or House of Representatives could increase their ability to request documents, strengthen investigative teams, and summon regulatory officials and corporate executives to testify.
Speaking to Reuters, Kevin Edgar, a partner at BakerHostetler and former chief legal counsel for the House Financial Services Committee, stated that everything that happened in the first two years of the Trump administration could be subject to investigation.
The report states that one of the Democrats’ priority areas of investigation is expected to be Donald Trump and his family’s business connections to cryptocurrency and the prediction markets. Democrats have long argued that these relationships could create a conflict of interest. Representative Ro Khanna is also reported to have stated that these financial transactions and cryptocurrency activities should be examined from a national security perspective.
Prediction markets are also at the center of potential investigations. Democrats argue that these platforms could pose risks stemming from public officials’ access to classified information.
The report also stated that Democrats are expected to summon cryptocurrency company executives to Congress to testify. It was even suggested that SEC officials could be questioned.
However, a change in the majority in Congress will not automatically end the Trump administration’s policies towards the crypto sector. But, according to Reuters, increased scrutiny and investigations could lead regulators to act more cautiously in their controversial decisions.
*This is not investment advice.
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