Trump's Crypto Ventures Face Congressional Scrutiny Amid Price Drop

Official Trump's latest price was $13.35, down 2.636% in the last 24 hours. The cryptocurrency has been under scrutiny due to recent political developments. Top House Democrats sent a letter to the U.S. Treasury Department, asking its money laundering watchdog to hand over all suspicious activity reports tied to President Donald Trump’s crypto ventures. In a letter sent to Treasury Secretary Scott Bessent, Reps. Gerald Connolly, Joe Morelle and Jamie Raskin called for an urgent investigation into Trump’s blockchain project World Liberty Financial and the $TRUMP memecoin, citing possible violations of campaign finance laws, bribery statutes and securities regulations. The request marks an escalation in congressional scrutiny on whether President Trump and his entourage are abusing their positions of power to benefit their crypto businesses. Senate Democrats pointed to Trump’s crypto ventures as part of their reason for not voting to advance stablecoin legislation that previously saw bipartisan support. The inquiry zeroes in not only on the Trump family’s September 2024 launch of World Liberty Financial and the $TRUMP memecoin launched just days before his inauguration, but also Elon Musk’s America PAC and whether they are using Trump’s name to solicit donations under false pretenses.

Since the beginning of the 2024 U.S. presidential election campaign, President Donald Trump has made a complete U-turn in his approach to crypto. Recently, he hinted there might be “No Capital Gains Tax on Crypto made in the U.S.” With Bitcoin already near its ATH price, investors are now eyeing American-made tokens. Trump proposes ending crypto taxes to boost U.S.-made tokens and blockchain innovation efforts. The "zero crypto tax" plan needs Congress approval, Trump can’t enforce it alone. Meanwhile, experts believe the plan has a 40–50% chance, likely for long-term gains. Back in 2019, Trump openly criticized Bitcoin, calling it “based on thin air.” But things have taken a sharp turn. Now, he’s positioning himself as a pro-crypto leader, with the goal of turning the U.S. into a Crypto capital for blockchain innovation. Although his campaign promise involves removing capital gains taxes on crypto seems to be circulating in the United States. Even Trump’s son, Eric Trump, added fuel to the fire, calling it a “zero crypto tax” proposal. While the idea sounds exciting, there’s a big problem—it’s not official policy. The truth is, Trump can’t make this change alone; eliminating capital gains tax would require approval from Congress, and even if Republicans take control, not everyone is on board. Many lawmakers are worried about losing federal revenue from crypto taxes, which currently bring in billions. Another challenge is the lack of clarity. What exactly does “U.S.-made” crypto mean? Does it depend on where the company is based, where the blockchain is hosted, or the citizenship of the developers? Without clear definitions, it could make the rule hard to follow. Even though the idea sounds far-fetched, some believe Trump is serious. Tax experts say there’s about a 40–50% chance that a version of this plan could pass. If it does, it may only apply to long-term crypto gains. This isn’t just about taxes. Trump’s plan may also be about bringing more money and innovation back to the U.S., competing with China’s digital currency, and using crypto policy as a powerful political tool. While Trump’s “zero crypto tax” promise has made waves in the crypto world, it’s not a real policy, just an idea.