The network reported that the TD Cowen Washington Research Group led by Jarrit Seiberg wrote in a report that political risks for the crypto industry are rising because actions related to U.S. President Donald Trump and his administration could undermine progress in crypto regulation. "We are concerned that political threats may intensify and ultimately pose a threat to legislative and regulatory reform of cryptocurrencies, and we do not currently believe that political risks will undermine Washington's cryptocurrency agenda, but the risks are rising rather than declining," the report said. Because of this, we believe this is a key factor for cryptocurrency investors to focus on." Lawmakers and regulators in Washington State are currently making progress on cryptocurrency legislation and cryptocurrency guidance. The U.S. Securities and Exchange Commission (SEC) has dropped multiple cryptocurrency lawsuits, and lawmakers are proposing ideas for a regulatory framework for stablecoins and market structure. However, analysts said the growing controversy over the Trump family's involvement in the cryptocurrency space, including planned stablecoins, could threaten this momentum. "We are increasingly concerned about escalating political risks as the actions of the Trump family businesses and their administration may spark a backlash that undermines the government's proactive actions," he wrote.