US Ethics Panel Probes Trump’s Crypto Ties—Is This Political Theater or Legitimate Oversight?

Washington sharpens its knives as a congressional committee launches a review of former President Trump’s cryptocurrency engagements. Could this be the smoking gun for conflict-of-interest violations—or just another partisan circus?

Behind the scenes: The probe targets Trump’s post-presidency crypto ventures, including NFT promotions and alleged backchannel deals with industry players. Critics argue it reeks of pay-to-play politics, while supporters claim it’s a witch hunt against a pro-crypto figure.

Bonus cynicism: Nothing boosts a politician’s crypto portfolio like a well-timed investigation—volatility creates buying opportunities, after all.

From Skepticism to Launching WLF and Backing $TRUMP Coin

Trump’s foray into the crypto world marks a notable shift, as he once dismissed digital currencies as a “scam.”

Since 2024, however, he has embraced the sector, launching WLF alongside his sons and crypto entrepreneurs. The platform has raised over $550m through token sales, with the Trump family standing to gain a significant share.

Meanwhile, the $TRUMP coin surged to a $7.7b valuation shortly after its launch, reinforcing Trump’s brand association with the digital asset market.

In response to the growing scrutiny, Trump refuted allegations regarding his involvement in the profitability of the $TRUMP coin. Speaking on Meet The Press on May 4, he denied that he had made any profit from the memecoin, which he launched just days before his inauguration in January.

Trump’s Crypto Ventures Face Growing Criticism Over Foreign Government Ties and Conflicts

The investigation also scrutinizes foreign investments in WLF, particularly a $2b deal involving an Abu Dhabi-backed firm, MGX, and crypto exchange Binance.

Critics, including Senator Jeff Merkley, argue that such deals could be a conduit for foreign governments to funnel money to the Trump family, raising alarms about potential conflicts of interest and national security risks.

Blumenthal’s inquiry comes after growing concerns over Trump’s deregulation efforts in the crypto sector, including his decision to dismantle the National Cryptocurrency Enforcement Team at the Justice Department.

These actions have sparked criticism, with figures like Sen. Elizabeth Warren accusing Trump of using his position to benefit his business interests, particularly in the crypto space.

The investigation will likely delve deeper into the mechanics of these ventures, particularly concerning foreign influence and transparency. With Republicans controlling Congress, the investigation’s trajectory remains uncertain, but it marks a critical moment for Trump’s crypto ambitions.

In response to these concerns, a White House spokesperson stated that Trump’s assets are managed by his children in a trust, asserting that there are no conflicts of interest.