Cryptocurrencies Surge 8% as Middle East Tensions Ease, Political Tokens Gain 30%

Cryptocurrencies experienced a surge on Tuesday as Donald Trump declared a ceasefire between Israel and Iran, easing tensions in the Middle East. Bitcoin, for instance, rose from around $98,000 to $105,809 at the time of reporting. Top altcoins such as Ethereum, XRP, and Solana also saw gains of up to 10% in the past 24 hours, driven by renewed optimism in the market.

Investor attention, however, remained focused on political-themed cryptocurrencies due to recent regulatory developments. Senator Adam Schiff introduced the COIN (Curbing Official’s Income and Nondisclosure) Act, which aims to prohibit high-ranking government officials, including the president, vice president, their families, and top executive officials, from issuing, endorsing, or sponsoring digital currencies. The bill seeks to prevent the mixing of politics with digital asset profits, ensuring that public service remains distinct from private gains.

The market responded swiftly to these developments, with PolitiFi coins’ market cap increasing by nearly 10% from $2,006,990,100 to $2,203,062,675. This notable gain followed massive rallies in top political-tied tokens, with Department of Government Efficiency, Pepe Trump, and the America Party memes soaring up to 30% in the previous 24 hours. The sector’s trading volume increased remarkably within the past day, reflecting renewed investor and trader interest in cryptocurrencies linked to politicians.

The activity surge comes as PolitiFi tokens remain in the spotlight following the proposed legislation, which follows mounting concerns over Trump’s crypto investments. Schiff stated that the president and his sons earned around $57 million in Q1 2025 from the World Liberty stablecoin venture. The US president also participated in activities related to digital exchange-traded funds (ETFs), tokenized assets, and Bitcoin mining. Furthermore, Trump’s crypto regulation moves have raised worries over conflicts of interest. Recently, he argued for the HOUSE to act “Lighting fast” in passing the Genius bill.

The COIN Act, if passed, would ban high-ranking government officials from various crypto undertakings. It will bar officials from launching, endorsing, or advertising any virtual assets, including NFTs, stablecoins, meme tokens, and tokenized ETFs. Violations would attract serious consequences, including a 5-year jail term and profit forfeiture. While Schiff’s bill applies to all high-ranking officials, it has likely stemmed from Trump’s crypto dealings. The US president launched his meme token in January days before his inauguration and recently organized a private dinner with holders of his meme token, a move that attracted a massive backlash. Moreover, Trump Media has reaffirmed its plan to accumulate Bitcoin worth $2.3 billion. Schiff added that the president has profited from various branded merchandises, including Watches, Sneakers, and the Make America Pray Again Bible. Schiff believes such levels of crypto involvement pose serious ethical risks, a sentiment echoed by Ethereum’s Buterin, who called politician-backed cryptos ‘vehicles for unlimited political bribery.”