Trump Crypto Projects Facing Lawsuit, Potential Ethics Crackdown, and More

Key Points:

• Trump-linked crypto ventures are facing multiple challenges, including a lawsuit against World Liberty Financial by crypto billionaire Justin Sun, potential restrictions from the CLARITY Act preventing Trump from profiting from crypto while in office, and Eric Trump’s removal from Alt5 Sigma Corp’s leadership page.
• The Trump family reportedly earned $1.4 billion in 2025 through crypto activities such as token sales and memecoins, which helped offset losses in other business areas; however, these ventures are now embroiled in turmoil amid ethics concerns tied to Trump’s presidency.
• The CLARITY Act, which aims to regulate crypto tokens and address ethics issues related to Trump’s crypto dealings, is gaining bipartisan support and could be voted on before the November midterm elections, with a 46% chance of becoming law this year according to prediction markets.
• World Liberty Financial faces a lawsuit from Justin Sun over frozen assets, with prior scrutiny from Democrat senators about a potential pay-to-play scheme involving Sun’s holdings; the company also drew criticism for borrowing stablecoins against its own tokens, echoing tactics used by the collapsed FTX exchange.
• Alt5 Sigma Corp, another Trump-affiliated crypto firm, has seen its stock plunge about 85% in the past year, with Eric Trump removed from its leadership page; meanwhile, Democrats have raised conflict of interest concerns about a loan from Tether to a trust connected to Commerce Secretary Howard Lutnick.