TLDR
- Official Trump token fell 17% and World Liberty Financial’s token dropped over 7% after Democrats won Congress.
- Bitcoin rose more than 4% to about $80,500 while Trump-linked tokens slid.
- Trump Media & Technology Group stock hit a record low of $5.23 at the open.
- Incoming House Oversight chair Robert Garcia plans probes of Trump family business deals, possibly from February 2027.
- The stalled CLARITY Act faces more uncertainty after the vote.
Two crypto tokens tied to President Donald Trump led losses among the top 100 digital assets on Wednesday. The drop came a day after Democrats won control of both the House and the Senate in the midterm elections. The rest of the crypto market moved higher.
JUST IN: 🇺🇸 $TRUMP coin crashes over 20% today as Democrats prepare to investigate President Trump's crypto ventures after winning control of Congress. pic.twitter.com/ZczUUhcZsn
— Watcher.Guru (@WatcherGuru) November 5, 2026
The official Trump memecoin fell 17% over 24 hours to $1.33, according to CoinMarketCap. World Liberty Financial’s WLFI token dropped more than 7% to $0.047. The Trump token launched in January 2025, and WLFI is the governance token of a Trump family-backed project launched in 2024.
Other politically themed tokens also lost ground. The MELANIA memecoin, linked to First Lady Melania Trump, fell nearly 13% to about $0.066. A token named after Vice President JD Vance dropped nearly 12%, though it has no confirmed official tie to him.
The political memecoin sector lost more than 16% of its value and now stands at $477 million. Trading volume in the sector rose 123% to $437 million.
Wall Street feels the slide
The selloff reached the stock market as well. Trump Media & Technology Group, the owner of Truth Social, hit a record low of $5.23 at the open. That was down more than 11% from the previous close.
The stock fell about 16% around midday and is down more than 55% this year. Trump holds about 41% of the company. It has moved into bitcoin and prediction markets, but those efforts have not yet paid off. Shares later traded near $4.55, compared with a 52-week high of $17.09.
The wider crypto market went the other way after an overnight dip. Bitcoin rose more than 4% to around $80,500, and Ether gained 6% to $2,433. BNB, XRP and Solana rose between 2.5% and 3%. The total crypto market climbed 3.4% to $2.69 trillion.
Benjamin Sarquis Peillard, CEO of the DeFi platform Cap, spoke to Cointelegraph about the split. He said Bitcoin tracks liquidity, institutional flows and economic conditions. Politically linked tokens, he said, react more to expectations about Washington.
Peillard said the selloff could be a short-term reaction. He added that the longer-term question is what supports demand for these tokens beyond their link to a political figure.
Trump-linked tokens were already falling before the vote during a wider crypto correction. Bloomberg reported that crypto firms tied to Trump have hired lawyers and lobbyists in case Democrats open investigations.
Investigations and legislation
Representative Robert Garcia of California is expected to lead the House Oversight Committee. After the results, he posted a two-word message: “Lawyer up.” His office said it plans to investigate Trump administration dealings and businesses tied to the president.
The planned probes cover crypto transactions, conflicts of interest involving foreign investors, and government contracts for companies linked to Trump relatives. Garcia told Punchbowl News that investigators would look at family members “sitting on boards and getting contracts.” The inquiries could begin as early as February 2027.
World Liberty Financial is a possible early target. A reported $500 million investment came from Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser. His investment vehicle reportedly bought a 49% stake in the company before Trump’s January 2025 inauguration.
World Liberty also plans a federally regulated trust bank to handle its USD1 stablecoin. The Office of the Comptroller of the Currency gave preliminary conditional approval on August 14. The company still needs final approval before it can operate.
Reuters estimated that Trump family crypto ventures earned at least $2.3 billion. Financial disclosures show Trump reported more than $1 billion in crypto-related income for 2025, including about $635 million in royalties tied to the TRUMP memecoin.
Democrats may also look at Trump’s pardon of Binance founder Changpeng Zhao. Binance had business links to World Liberty through the USD1 stablecoin. Zhao denies business ties to the Trump family and says he never discussed clemency.
The Digital Asset Market Clarity Act, known as the CLARITY Act, remains stalled. It failed to advance in the Senate earlier this year after falling short of the 60 votes needed. Democrats wanted stronger ethics rules on Trump’s crypto ventures, and four Republicans also opposed it.
Peillard said the midterm results add a new layer of regulatory uncertainty. The White House has rejected the investigation plans. Spokeswoman Lauren Bis told Newsweek that Democrats’ “only agenda is to continue their decade long witch hunt against President Trump.”
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