On April 16, investment bank TD Cowen pointed out that the Trump family's crypto business (including planned stablecoins) could trigger a rebound and delay U.S. regulatory process, and political risks are climbing despite lawmakers accelerating the crypto regulations, according to TheBlock. "We are concerned that political threats may escalate to a level that can undermine legislative and regulatory reforms in the crypto space. While there is no political risk to completely disrupt the crypto industry, the risks are rising rather than falling, which is a key factor we think investors need to pay attention to," Jaret Seiberg, head of the Washington research team at TD Cowen.

Currently Washington lawmakers and regulators are making progress in crypto legislation and guidelines. The Securities and Exchange Commission (SEC) has dropped several crypto lawsuits, and lawmakers are posing a regulatory framework for stablecoins and market structures. Seiberg mentioned that last week, SEC acting chairman Mark Uyeda also hinted that the SEC could provide exemptions to crypto trading platforms and traditional exchanges that want to trade tokenized securities. However, Seiberg said the momentum could be threatened by the controversy caused by the Trump family’s entry into the crypto space, including the stablecoin it plans to launch. "We are increasingly concerned that Trump's family business practices and their administration actions may trigger a strong backlash, leading to a derailment of positive government actions." Seiberg also pointed to concerns about the Trump administration's anti-money laundering policy shift, such as lifting sanctions on Tornado Cash, the cryptocurrency mixer, and the Department of Justice's reduction in prosecutions of cryptocurrency laundering cases.