Following the Democrats' victory in the US midterm elections, President Donald Trump and his business associates could face increased scrutiny. Democrats are preparing to investigate the Trump family's cryptocurrency dealings linked to Pakistan, government decisions and the business activities of Elon Musk.
Following their electoral victory, Democrats are seeking to examine decisions taken by the Trump administration and business activities associated with the president's family. Several Democratic lawmakers have called for investigations into potential conflicts of interest between public office and private business interests.
California Democratic Representative Robert Garcia is expected to become chairman of the House Oversight and Government Reform Committee. He has outlined plans to investigate four major areas.
These include the Trump family's business dealings, alleged corruption and political benefits involving major corporations, actions taken by the Department of Homeland Security and Immigration and Customs Enforcement (ICE), and files related to the Jeffrey Epstein case.
Garcia has said that officials and businesspeople whose decisions have been questioned could be required to answer questions before Congress.
The Trump family's cryptocurrency company, World Liberty Financial, and its international business relationships are also attracting attention from Democrats. An agreement involving Pakistan has added a new political dimension to the issue.
In January 2026, Pakistan signed a memorandum of understanding with SC Financial Technologies, a company associated with World Liberty Financial. The agreement aimed to examine the potential use of the dollar-pegged USD1 stablecoin in international payments.
Democrats now want to determine whether there are any connections between the Trump family's foreign business interests and decisions taken by the US government. However, the signing of the agreement does not, in itself, constitute evidence of any illegal activity.
Elon Musk, a close business associate of Trump, could also become a potential target of Democratic investigations. Musk spent a substantial amount of money supporting Republican candidates during the elections, but the results did not meet expectations.
According to campaign finance watchdog OpenSecrets, Musk spent approximately $445 million in federal elections. Despite this significant expenditure, the Republican Party suffered substantial losses.
According to a Reuters report, only three of the 37 Republican candidates for the House of Representatives backed by Musk had confirmed victories, while 33 lost. The result in one constituency was still pending at the time.
In the Senate elections, six of the seven Republican candidates supported by Musk also lost. His substantial electoral investment therefore failed to deliver the expected results.
Musk also suffered a setback in Texas, where he had spent approximately $230 million on the Senate election. Despite the expenditure, Republican candidate Ken Paxton was defeated by Democrat James Talarico.
Texas is commercially significant for Musk, as his companies Tesla and SpaceX have a substantial presence in the state. Against this backdrop, political changes in Texas could also affect his business relationships.
Democrats are also seeking to examine Musk's role in government departments, contracts awarded to his companies and decisions concerning government assistance.
The Democrats' majority could increase congressional scrutiny of the Trump administration. Congressional committees may seek documents and summon government officials and businesspeople to testify.
The White House, however, has denied any wrongdoing. The administration has argued that investigations driven by political motives would not serve the interests of ordinary Americans.
Democrats also face challenges. Alongside investigations, they will need to address inflation, everyday living costs and other economic issues. Some party leaders have cautioned that the investigations should not appear to be politically motivated acts of retaliation.
