Two crypto tokens linked to U.S. President Donald Trump led to losses among the top 100 digital assets on Wednesday following the U.S. midterm elections, raising questions about their future as the broader crypto market recovered.
According to CoinMarketCap data at around 5:32 p.m. UTC, the official Trump price (TRUMP) fell 17% in 24 hours to $1.33, while World Liberty Financial (WLFI) fell over 7% to $0.047. TRUMP is the official presidential memecoin, launched in January 2025, while WLFI is the governance token of World Liberty Financial, a Trump family-backed decentralized finance (DeFi) project launched in 2024.
The declines followed a wave of Democratic victories, including surprise victories in Texas, in Tuesday’s midterm elections, in which the party won control of the House and Senate from Republicans.
The findings could not only make it harder for Trump to move forward with his crypto plans, but also lead to greater scrutiny of his family’s crypto businesses. Analysts say the losses also raise questions about whether political sentiment alone can drive demand for Trump-related tokens.
Political tokens are falling while Bitcoin and Ether are rising
Bitcoin (BTC) rose more than 4% to around $80,500 in 24 hours, while Ether (ETH) climbed 6% to $2,433, according to data from CoinMarketCap. Other major cryptocurrencies also saw gains: BNB rose by 3%, XRP by 2.6% and Solana (SOL) by 2.5%. The overall crypto market rose 3.4% to $2.69 trillion.
Meanwhile, the losses also extended to other tokens linked to the Trump family, such as the MELANIA memecoin, which is associated with First Lady Melania Trump. MELANIA fell almost 13% in 24 hours to around $0.066.
A separate token named after Vice President JD Vance (VANCE) also fell almost 12%, despite there being no confirmed official connection to the vice president.
The losses were also reflected in the broader political memecoin market, with the sector’s total market cap falling more than 16% on the day to $477 million. According to CoinMarketCap data, trading volume increased by 123% to $437 million.
Related: How the 2026 US midterm elections came about: Democrats win control of Congress
A growing divergence raises lasting questions
Benjamin Sarquis Peillard, founder and CEO of Cap, a DeFi platform focused on stablecoin yields, told Cointelegraph that investors appear to treat politically linked tokens differently than other cryptocurrencies.
“Bitcoin and other established assets respond to a combination of liquidity, institutional flows and macroeconomic conditions, while politically connected tokens may be more sensitive to changes in expectations in Washington,” he said. “Even if the broader market recovers, these tokens could face selling pressure as investors begin to reassess their risk.”
And while the selloff may indicate a short-term reaction to the election results, Peillard said the “longer-term question is what supports demand for these tokens beyond their association with a political figure.”
The CLARITY Act and beyond
Beyond the market reaction, the election results also raise questions about the future of US crypto legislation, including the currently stalled Digital Asset Market Clarity Act, commonly referred to as the CLARITY Act.
The bill, which aims to create a regulatory framework for digital assets, failed in the Senate earlier this year after failing to receive the required 60 votes. Democrats pushed for stricter ethics regulations and conflict-of-interest protections related to Trump’s crypto ventures – four Republicans also opposed advancing the legislation.
“The interim results introduce a new level of regulatory uncertainty, particularly regarding the pace and direction of legislation on digital assets,” Peillard said. “For politically linked tokens, this uncertainty may have a more immediate impact as investor sentiment is partly tied to expectations regarding the political environment.”
While the crypto sector continues to face support – and resistance – from lawmakers of both parties, it remains to be seen how the election results will impact crypto legislation.
Peillard said that for the industry as a whole, “the more important question is whether Congress can create a permanent regulatory framework that provides clarity regardless of which party holds power.”
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