Coinbase Stock Plunges 11.13% Amid Trump Crypto Probe

On August 1, 2025, Coinbase Global's stock experienced a significant drop of 11.13% in pre-market trading.

U.S. Senator Elizabeth Warren, along with Senators Chris Van Hollen and Ron Wyden, has called for an investigation into potential conflicts of interest related to the Trump family's involvement in cryptocurrency ventures. The senators have expressed concerns about how the Office of the Comptroller of the Currency (OCC) will prevent the Trump family's financial interests from influencing the regulatory framework for stablecoins, particularly after the enactment of the GENIUS Act.

The inquiry focuses on USD1, a stablecoin launched by World Liberty Financial, a platform associated with the Trump family. The senators argue that Trump's personal financial interests are closely linked to the success of USD1, creating a significant conflict of interest that could compromise the integrity of the financial system. This concern is amplified by a $2 billion deal involving an Emirati firm, MGX, and Binance, which reportedly used USD1 to facilitate the transaction.

Industry observers have also raised concerns about the potential for political influence over financial markets. The situation is further complicated by the fact that nearly 70 Trump administration officials and nominees have disclosed cryptocurrency holdings or investments in blockchain-related companies, with assets ranging from small amounts to over $120 million.