Political risks in the crypto industry are rising as actions related to U.S. President Donald Trump and his administration could undermine progress in crypto regulations, a TD Cowen Washington research team led by Jarit Seberg wrote in a report. "We are concerned that political threats may intensify and ultimately pose a threat to cryptocurrency legislation and regulatory reforms, and we do not yet believe that political risks will undermine Washington's cryptocurrency agenda, but this risk is rising rather than falling. Because of this, we believe that this is a key factor for cryptocurrency investors to focus on." Washington state lawmakers and regulators are currently making progress in cryptocurrency legislation and cryptocurrency guidance. The Securities and Exchange Commission (SEC) has dropped several cryptocurrency lawsuits, and lawmakers are posing a regulatory framework for stablecoins and market structures. However, analysts say the growing controversy over the Trump family's involvement in the cryptocurrency sector, including planned stablecoins, could threaten the momentum. "We are increasingly concerned about escalating political risks as actions by the Trump family business and its administration may trigger a rebound, thus undermining the administration's active actions," he wrote.