TD Cowen: Political risks in the crypto industry are on the rise, and the Trump family's crypto investments could undermine regulatory efforts

The TD Cowen Washington research group, led by Jarrett Seberg, wrote in a report that political risk in the crypto industry is on the rise as actions related to U.S. President Donald Trump and his administration could derail progress in crypto regulation.
"Our concern is that political threats could intensify and ultimately pose a threat to cryptocurrency legislative and regulatory reform, and we do not currently believe that political risks will derail the cryptocurrency agenda in Washington, but they are rising rather than falling," the report said. "As such, we believe this is a key factor for cryptocurrency investors to watch."
Lawmakers and regulators in Washington state are currently making progress on cryptocurrency legislation and guidance. The Securities Exchange Commission (SEC) has dropped multiple cryptocurrency lawsuits, and lawmakers are coming up with ideas for a regulatory framework for stablecoins and market structures.
However, analysts said the growing controversy over the Trump family's involvement in the cryptocurrency space, including the planned launch of a stablecoin, could threaten that momentum. "We are increasingly concerned about the escalating political risk as the actions of the Trump family business and its administration could trigger a backlash that could undermine aggressive government action," he wrote.