- Blumenthal gave four crypto firms until Jan. 4, 2027, to submit Senate probe records.
- Democrats cite ethics, foreign influence and illicit finance in Trump-linked crypto probes.
- Bitcoin rebounded from $75,600 to $78,300 as TRUMP fell 7.1% and WLFI slid 5%.
Sen. Richard Blumenthal has given Binance, Tether, World Liberty Financial and Fight Fight Fight LLC until January 4, 2027, to provide records for Senate investigations.
He warned that the Senate Permanent Subcommittee on Investigations (PSI) may consider other measures if they fail to comply. Blumenthal is expected to chair the panel when the new Congress convenes in January.
Why Democrats Are Examining Trump’s Crypto Ventures
Blumenthal’s stated concerns involve possible conflicts of interest, foreign influence and alleged illicit finance. In May 2025, he opened an inquiry into World Liberty Financial and the TRUMP meme coin after reports raised questions about potential ethics violations, foreign government investments and transactions involving foreign nationals under federal prosecution.
In July 2026, Blumenthal and four other Democratic senators cited Trump’s financial disclosures, which they said showed about $1.4 billion in income from family crypto ventures during his first year of the second term.
They also pointed to a reported 49% UAE stake in World Liberty Financial and questioned whether Trump’s crypto interests could influence policy decisions. Their stated focus was ethics and national security, rather than opposition to cryptocurrency as a whole.
The Binance and Tether inquiry also examines alleged illicit use of crypto. A September PSI Democratic staff report said 84% of 846 sanctioned or seizure-targeted Iran-linked wallets used USDT almost exclusively.
Tether said it supported about $550 million in Iran-linked freezes this year. Binance has rejected allegations about its sanctions controls, calling media claims false and unsupported.
An October 22 letter sought Tether records about Nxum, a consulting firm co-founded by former White House crypto adviser Bo Hines. Blumenthal cited reporting that Tether paid Nxum more than $6 million while Hines held a White House role. Tether said an external counsel review found no evidence of wrongdoing.
Could Findings Against Trump Shake Bitcoin?
The investigation’s direct focus is on Trump-linked ventures, Binance and Tether. If evidence confirms wrongdoing, those businesses and related tokens could face direct scrutiny. Bitcoin could still react if investors see broader regulatory or political risks for the crypto market, but a Bitcoin selloff would not automatically follow from a finding against Trump.
Recent trading shows both spillover risk and volatility. After Democrats won control of Congress, Bitcoin fell to about $75,600 before recovering to around $78,300. Trump-linked tokens fell during the same period, with the TRUMP token down by 7.1% and WLFI down 5%.
Related: Trump-Linked Crypto Ventures Face Possible Probes as Democrats Regain Congress
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