The Democratic Party has locked onto multiple corruption investigations involving Trump, cryptocurrency, family conflicts of interest, and presidential pardons.

Written by: Dong Jing, Wall Street Journal

With the conclusion of the U.S. midterm elections, partisan conflicts have entered a new phase. After winning control of Congress, the Democratic Party quickly pointed its arrows at the Trump administration, vowing to launch large-scale corruption investigations; the White House struck first, warning Democratic lawmakers that their investigative actions "may involve criminal conduct," sharply escalating political tensions in Washington.

According to Xinhua News Agency, White House legal advisor Will Scharf sent a letter on November 9 to House Oversight Committee Chairman, Democrat Robert Garcia, accusing Democrats of attempting to use congressional investigative procedures to intimidate and harass government officials, and warned that if the investigations were intended to obstruct executive officials' duties or intimidate investigative subjects through abuse of power, it could constitute a "crime." Garcia immediately countered, saying, "It seems Trump has something to hide," and emphasized that congressional power derives from the Constitution, not the approval of the White House.

The Democratic Party achieved significant victories in the midterm elections and plans to investigate Trump’s real estate projects in Washington, cryptocurrency dealings, and other issues as they take office in the new Congress. According to media reports on November 11, Democrat Jamie Raskin, who is expected to become the chair of the House Judiciary Committee, stated that his "top priority" is to restore "the rule of law and constitutional government," directly pointing to what he termed the "avalanche of corruption and fraud" emerging from the Trump administration. Raskin also warned party colleagues not to divert their energy into a second impeachment of Trump, or else it would become a "smokescreen" for Republicans to shift attention away from other issues.

The White House strikes first, warning investigations "may cross into criminality"

According to Xinhua News Agency, in his letter, Will Scharf cited U.S. Supreme Court precedents, stating that congressional investigations must serve legislative purposes and cannot replace the executive and judicial branches in exercising criminal prosecution authority. He wrote, "Compulsory processes are the powers Congress uses for oversight functions and are limited to oversight functions," and warned that "issuing illegal subpoenas aimed at depriving citizens of constitutional rights may require further investigation."

Media reports indicated that the letter was first disclosed by Punchbowl News. Notably, Garcia's spokesperson Sara Guerrero later stated on X platform that the committee has not actually received this letter.

Several lawyers quickly criticized Scharf's letter as an overreach, pointing out that congressional members are protected under the Constitution's "Speech or Debate Clause," which provides them with immunity for their legislative actions, and that obstructing a congressional investigation constitutes a crime in itself.

Raskin stated that he had informed Garcia that they could seek an injunction based on Scharf's letter and related statements from senior White House officials. "Threatening criminal prosecution against those engaged in First Amendment activities is itself an act that can be legally actionable," Raskin said. He also pointed out that the White House "seriously overstates its own powers and is creating embarrassment for itself."

Democrats lock on to investigative targets: cryptocurrency, pardons, conflicts of interest

Raskin revealed to the media the key directions of the Democratic investigations, covering multiple areas.

In the area of cryptocurrency, Trump has disclosed that his revenue will exceed $2 billion in 2025, with over $1 billion coming from a cryptocurrency company founded by his son. Multiple committees have sought information regarding Trump’s cryptocurrency business and plan to investigate cases where he profited from his presidential position.

Regarding presidential pardons, Raskin stated that they will investigate Trump allies who received presidential pardons, as well as companies linked to Trump that were exempted from tariffs, including the so-called "Department of Government Efficiency" led by Elon Musk (DOGE).

In terms of family conflicts of interest, Raskin hinted at investigating 1789 Capital—the venture capital firm of Trump's son Donald Trump Jr. He claimed that the company profited handsomely because Trump Jr. "seemed to have prophetic insight into which companies would receive government contracts." The lawyer for 1789 Capital, Quinn Emanuel, has written to Raskin, stating that he is peddling a "false narrative" and that the company "has no intention of becoming a hostage in a political game."

Raskin also targeted Trump’s son-in-law Jared Kushner, claiming that his involvement in leading a private equity firm backed by a Middle Eastern sovereign wealth fund while participating in diplomatic negotiations regarding the Iran war constitutes a "shocking conflict of interest." He questioned whether Kushner was 100% protecting the interests of his Saudi, Emirati, and Qatari business clients, or 100% serving the interests of the American people.

In response, White House spokesperson Olivia Wales stated that Kushner’s personal business activities were "entirely unrelated" to his diplomatic work, which was conducted "as a volunteer at the request of the president." Kushner himself issued a statement saying he "never took any diplomatic action to benefit Affinity, myself, or any investors," and claimed that his diplomatic work "was wholly in service of American interests."

Impeachment controversy: Raskin warns against falling into the Republican "trap"

Despite the strong momentum of the Democratic investigations, Raskin firmly opposes prioritizing a third impeachment of Trump. Reports indicated that he said impeachment would serve as a "curtain to cover all the corruption issues," and pointed out that Republicans are " begging" Democrats to go down this path so that it can be used as a "distraction" to shift public and legislative attention.

"What we are facing is the avalanche of corruption and fraud in the Trump administration, so when you ask me what the priorities or the first hearing is, we cannot answer, because we are still trying to clarify this disaster."

Before the midterm elections, polls indicated that corruption issues were among the top concerns alongside living costs and the Iraq War. On election night, Garcia made a two-word statement, urging government officials to "get good lawyers."

White House spokesperson Lauren Bis stated that Trump "is willing to work with anyone to continue creating victories for hard-working Americans," and claimed that if the Democrats choose to "pursue false investigations and radical leftist policies, they are choosing to oppose the American people."

White House counter-investigation: Department of Justice takes action, grand jury repeatedly refuses

Meanwhile, the Trump administration is accused of using executive power to investigate political opponents of the president. The Department of Justice has filed lawsuits against former FBI Director James Comey and New York Attorney General Letitia James.

However, reports indicate that many of the government's efforts have been blocked by the grand jury, which has taken the highly unusual step of rejecting multiple proposed prosecutions, including a recent case against former White House aide Cassidy Hutchinson. In February of this year, the grand jury also rejected attempts to charge six Democratic lawmakers who had previously released a video reminding military personnel of their rights to refuse illegal orders.

In its investigation, Garcia’s committee has issued subpoenas regarding Kushner's business activities and texts from former U.S. Ambassador to Greece Kimberly Guilfoyle asking Trump allies for help paying credit card debts.

Analysts point out that as the new Congress is about to take office, the back-and-forth investigations and counter-investigations between the two parties in Washington are expected to become a core issue dominating American politics in the coming months.