Democrats have regained control of both chambers of Congress in the 2026 midterm elections, opening the door to subpoena-powered investigations into President Donald Trump’s family cryptocurrency businesses, including World Liberty Financial. The Associated Press reported that Democrats secured House and Senate majorities on Nov. 3, ending two years of unified Republican control and setting the new Congress to convene Jan. 3, 2027, with Trump remaining president.
Incoming House Oversight Committee chair Robert Garcia has promised aggressive scrutiny of Trump family financial dealings, telling Punchbowl News that investigators will examine family members who were sitting on boards and getting contracts. Among the early targets is World Liberty Financial, the Trump-affiliated crypto venture that has drawn Democratic attention over a reported $500 million investment by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE national security adviser. His investment vehicle reportedly acquired a 49% stake in the company shortly before Trump’s January 2025 inauguration.
The transaction has raised conflict-of-interest concerns because World Liberty Financial plans to operate a federally regulated trust bank for its USD1 stablecoin. The Office of the Comptroller of the Currency granted preliminary conditional approval to World Liberty Trust Company on Aug. 14, though final authorization is still pending. Democrats have previously asked Treasury Secretary Scott Bessent to investigate the foreign investment, but now the new majority gives them authority to issue subpoenas for documents and testimony without White House cooperation.
Reuters estimated that Trump family cryptocurrency ventures generated at least $2.3 billion in earnings, while investors in associated tokens suffered substantial losses. Financial disclosures showed Trump reported more than $1 billion in cryptocurrency-related income for 2025, including about $635 million in royalties from the TRUMP meme coin. Democrats may also examine Trump’s pardon of Binance founder Changpeng Zhao, whose exchange has business connections to World Liberty Financial through the USD1 stablecoin, though Zhao has denied discussing any clemency arrangement.
Beyond crypto, the committee plans to review more than $725 million in government loans, grants and awards to businesses connected to Trump’s sons, and could seek records from private companies and individuals. Democrats could begin investigations as early as February 2027.
Separately, the CLARITY Act remains stalled after its Sept. 15 Senate procedural vote failed 49–50, short of the required 60-vote threshold. The measure would divide crypto oversight between the SEC and CFTC and create a registration framework for digital commodity intermediaries. Republican opposition included concerns from Sen. Susan Collins that stablecoin provisions could draw deposits away from community banks and credit unions.
While legislation remains uncertain, regulators continue their own work. SEC Chairman Paul Atkins outlined Regulation Crypto Assets on Aug. 18, proposing a startup exemption for offerings up to $5 million over four years and a fundraising exemption of up to $75 million annually, alongside a safe harbor for when an investment contract ceases. A separate SEC proposal on Oct. 1 covers crypto custody for registered investment advisers and funds. The CFTC also opened a public consultation on Oct. 5 on a framework for retail crypto commodity transactions under Section 2(c)(2)(D) of the Commodity Exchange Act, with written comments due within 60 days of Federal Register publication.
