Warren is sharpening her knife, TRUMP and WLFI may have a hard time escaping.

Written by: Maher, Foresight News

On November 4, the overall result of the U.S. 2026 midterm elections has been determined, with the Democratic Party achieving historic flips in both the Senate and the House of Representatives, gaining full control over both chambers of Congress, ending two years of Republican dominance in the legislative body during President Trump's second term. According to mainstream media outlets like the Associated Press, Senate Democrats (including independent senators) secured at least 54 seats (net gain of about 7 seats), while Republicans obtained about 44 seats; in the House, Democrats surpassed the 218-seat majority threshold, with preliminary counts exceeding 228 seats (some positions are still being counted), while Republicans saw a significant decline.

This is a rare situation in nearly two decades, where the sitting Republican president lost control of both chambers simultaneously, comparable to the "blue wave" in the 2006 midterm elections under Bush.

Key flips include: Texas Democratic candidate James Talarico defeating his Republican opponent to become the first Democratic federal senator from the state in decades; Kansas' Adam Hamilton winning, ending the state's record of having no Democratic senator since 1932; states like Iowa, Ohio, South Carolina, North Carolina, and Maine also saw flips. In the House, Democrats won in several districts where Trump led significantly for 2024, with estimates suggesting a double-digit lead in the national House popular vote.

Voter dissatisfaction with high prices, tariff policies, and conflicts related to Iran became core issues mobilizing the Democratic Party.

Trump himself stated that he accepts the results but hinted at using his veto power more frequently. The new Congress will be sworn in on January 3, 2027, with Hakeem Jeffries expected to become the first African American Speaker of the House, while Chuck Schumer continues to lead Senate Democrats.

Mainstream cryptocurrencies are rebounding, WLFI and TRUMP are bleeding

The market reacted swiftly and diversely. BTC rebounded to a high of $81,196, ETH surged strongly past $2,400, and mainstream altcoins experienced a rebound. According to the latest data from Coinglass, over the past 24 hours, total liquidations across the network reached $974 million, with $582 million in short liquidations.

In contrast, the performance of TRUMP and WLFI, which are linked to Trump, is entirely different.

TRUMP has fallen from $1.6 at the beginning of November to around $1.26 now. It has dropped over 98% from its historical high of $77.

TRUMP price trend (1-hour chart)

The DeFi project World Liberty Financial, supported by the Trump family, has seen its token WLFI drop from $0.05 at the beginning of November to around $0.047 now. Though the 24-hour drop is relatively small, it has fallen over 81% from its historical high of $0.25. Its current market capitalization is $1.5 billion, with an FDV of $4.72 billion.

WLFI price trend (1-hour chart)

Matt Hougan, Chief Investment Officer at Bitwise, pointed out that this reflects the maturity of the cryptocurrency market. Politically linked assets directly affected by the election are priced separately and decoupled from broader macro and technical narratives.

Investigation

After the Democratic Party gained full control of both chambers, the investigation into the Trump family's cryptocurrency business is not merely a political spectacle.

After World Liberty Financial launched in 2024, the UAE National Security Advisor Sheikh Tahnoon-associated entities invested about $500 million for approximately 49% ownership ahead of and following Trump's inauguration; during the same period, the Trump administration adjusted sensitive policies regarding chip exports to the UAE.

The TRUMP coin, after its issuance in early 2025, generated hundreds of millions for the family.

Financial documents disclosed by the U.S. Office of Government Ethics (OGE) for 2025 show that Trump's total revenue from cryptocurrency exceeds $1.2 billion, with TRUMP contributing about $635 million and WLFI token sales contributing about $588 million.

These transactions occurred during his presidential term, with buyers including foreign entities and businesses seeking policy favors, giving concrete verifiable clues to the allegation of "using public power for private gain."

The investigation will focus on the two subjects, WLFI and TRUMP themselves, rather than the broad "cryptocurrency industry."

For WLFI, the focus will be on equity structure, issuance and reserves of the USD1 stablecoin, whether foreign capital influences governance, and the process of its associated entity World Liberty Trust (whose founder is Zach Witkoff, son of Trump’s Middle East envoy Steve Witkoff) applying for a national trust bank license (OCC has granted conditional approval). The TRUMP coin will be scrutinized regarding the identity of large buyers, whether there are arrangements for "paying for access," and the timing relationship with White House decision-making.

Previously, the Democrats have sent multiple letters requesting the Treasury and Justice Departments provide related suspicious transaction reports and held shadow hearings. After reclaiming the majority in both chambers, these informal actions will be transformed into formal procedures.

Robert Julio Garcia

Operationally, the House Oversight Committee will be the main battlefield, as it has extremely broad investigative and subpoena powers. Robert Julio Garcia, who is about to become chairman, has clearly listed the "Trump family cryptocurrency plan" as a priority.

The committee has extensive subpoena power, enabling it to compel private companies, family members, and related parties to provide documents and testify, with non-cooperation potentially triggering contempt of Congress procedures.

U.S. Senator Elizabeth Warren

In the Senate, Elizabeth Warren is expected to head the Banking Committee. She previously openly criticized WLFI-related bank licenses as "the most blatant self-dealing in history" and has pushed for legislation to prohibit the president and relatives from controlling banks. After the chambers coordinate, hearings could potentially start in February 2027, with initial targets likely focused on WLFI’s UAE transactions, funds flow of USD1, and major holders of the TRUMP coin.

As for the series of cryptocurrency-related bills and executive measures pushed or attempted during Trump's term, the Democrats will not simply "sweep it aside."

Crypto journalist Eleanor Terrett revealed on social media that, according to industry insiders who spoke to three Democratic staffers, House Democrats are discussing a plan to expand the "Cryptocurrency Investor and Consumer Rights Act" into a broader cryptocurrency market structure bill in the next Congress.

This proposal will incorporate elements from the Democratic "CLARITY Act" originally introduced in the House by Maxine Waters (but not passed) and terms that Senate Democrats reached consensus on with Republicans before the procedural vote (cloture vote) in September.

Senior Democratic Congresswoman Maxine Waters

Reportedly, some parts of the proposal currently under discussion include granting the U.S. Securities and Exchange Commission (SEC) a greater role in overseeing the cryptocurrency market, while the role of the U.S. Commodity Futures Trading Commission (CFTC) would be relatively limited. Additionally, there will likely be proposed ethical provisions to restrict cryptocurrency activities by President Trump and other federal officials.

In response, Republicans have termed this proposal a messaging bill, implying that it is merely to convey political positions and lacks practical implementation potential.

Currently, on Polymarket, the probability of the Clarity Act being signed within this year has dropped to 3%, with the market transaction volume exceeding $24.936 million.

Executive actions that the Trump administration has already taken (such as loosening enforcement, specific license approvals, and deferrals on certain cases) can be pressured through hearings, subpoenas, and budget leverage. The Democratic logic is to first clarify the boundaries of family interests through investigations, then decide whether to legislate to "plug loopholes" or require regulatory agencies to re-examine.

This is not a comprehensive strike against the cryptocurrency industry but focuses on the portion where "the president's family directly profits from it."

Impeached after term?

Currently, on Polymarket, the market bets that the probability of Trump being impeached before the end of this year is only 3%, but the probability of impeachment before January 20, 2029, has risen to 79%.

The Democrats will indeed utilize their newly obtained majority to intensively supervise Trump family's cryptocurrency business; the public statements by Garcia and Warren have made this very clear.

Trump still holds the veto power during the remainder of his term, and the majorities in both chambers are not overwhelmingly absolute. What the market is currently pricing in is the increase in regulatory and reputational costs following the disappearance of political premiums, rather than an immediate cleanup.

On November 5, according to reports from NBC News, ABC News, and others, Trump remarked in the White House banquet hall construction site regarding the possibility of impeachment initiated by the Democrats: "If they do this, it will destroy the Democratic Party." He firmly insisted that there are no grounds for impeachment. He also mentioned that Democrats have called expressing a desire to communicate, indicating that perhaps they can coexist, but also warned about the consequences of impeachment.

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