Crypto Market Update: Senate Democrats Demand Trump Envoy Explain Undivested Crypto Stakes
October 22, 2025 — By Meagen Seatter & Giann Liguid
Senate Democrats are raising concerns over Steve Witkoff, former President Donald Trump’s special envoy to the Middle East, for failing to divest his cryptocurrency holdings as required under federal ethics rules. The lawmakers have formally requested Witkoff to provide a detailed explanation regarding his continued investments in crypto businesses linked to his diplomatic role.
Congressional Scrutiny Over Crypto Investments
In a letter spearheaded by Senator Adam Schiff, eight Senate Democrats pressed Mr. Witkoff for transparency about his financial interests tied to World Liberty Financial, a cryptocurrency firm connected to the Trump network that Witkoff co-founded in 2024. Witkoff’s most recent ethics disclosure, dated August 13, 2025, reveals that he retains stakes in multiple crypto-related entities, including WC Digital Fi LLC and SC Financial Technologies LLC.
The lawmakers allege these holdings could present conflicts of interest, given Witkoff’s official responsibilities in the Middle East and the crypto company’s reported connections with the United Arab Emirates. The scrutiny intensified after a New York Times investigation linked Witkoff’s crypto firm to a $2 billion Emirati investment in Binance, reportedly funneled through World Liberty Financial’s stablecoin, USD1. As of now, neither the White House nor World Liberty Financial has issued public statements addressing these allegations.
Crypto Market Overview: Mixed Movements for Bitcoin and Altcoins
As of 9:00 a.m. UTC on October 22, 2025, Bitcoin (BTC) was trading at approximately $108,283, marking a slight 1% decline over the previous 24 hours. During the day, Bitcoin’s valuation fluctuated between a low of $107,393 and a high of $113,804. Despite recent short-term pressure—BTC has dropped over 4% in the past week and is trading below $108,000—some experts remain optimistic about Bitcoin’s future.
Matt Hougan, Chief Investment Officer at Bitwise, compared Bitcoin’s current state to gold’s dramatic rise in 2025. Gold prices surged about 57% this year, driven largely by central bank accumulation, while Bitcoin has remained within a tighter range. Hougan suggests Bitcoin may soon experience a similar structural breakout once selling pressure subsides, noting steady institutional interest as a key factor.
The introduction of spot Bitcoin ETFs in January 2024 has accelerated institutional inflows, with entities purchasing approximately 1.39 million BTC—outpacing new network supply. After a $19 billion liquidation event earlier this month, spot Bitcoin ETFs have rebounded with $477 million in net inflows, reinforcing institutional confidence.
Ether (ETH), the second-largest cryptocurrency, was trading near $3,857.14, down 2.7% in the past day, with a low of $3,798.70 and a high of $4,106.40. Other prominent altcoins also reflected downward movement: Solana (SOL) at $184.80 (down 2%), and XRP trading at $2.39 (down 2.6%).
Market Sentiment: Cautious Amid Ongoing Uncertainty
Investor sentiment remains cautious, as indicated by CoinMarketCap’s Crypto Fear & Greed Index, which has lingered in "fear" territory for seven consecutive days with a score of 29. This prolonged anxiety mirrors Bitcoin’s narrow trading range between $103,000 and $115,000 over the past two weeks.
The index has only experienced seven days of "greed" in the past month, coinciding with Bitcoin’s peak near $126,000 in early October. The shift toward fear began on October 11, following the largest liquidation event in crypto history that erased over $20 billion in leveraged positions.
Market analysts attribute this sentiment to uncertainty caused by recent shifts in Federal Reserve policies and renewed trade negotiations between the U.S. and China. Historically, such stretches of fear have preceded Bitcoin price reversals, as seen during the Trump administration’s trade disputes with China in early 2024. —
Additional Crypto Industry News:
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FalconX to Acquire 21Shares
FalconX announced plans to acquire 21Shares, a leading European issuer of crypto exchange-traded products (ETPs). The merger will combine FalconX’s prime brokerage services—which cater to over 2,000 institutional clients—with 21Shares’ portfolio of 55 digital asset products, including Bitcoin and Ethereum. The transaction will allow 21Shares, currently managing over $11 billion in assets, to continue operating under CEO Russell Barlow. This marks FalconX’s third significant acquisition in 2025, following Arbelos Markets and Monarq Asset Management. -
Hong Kong Approves First Spot Solana ETF
Hong Kong’s Securities and Futures Commission (SFC) authorized China Asset Management Company (ChinaAMC) to launch the first spot Solana ETF on the Hong Kong Stock Exchange, set to begin trading on October 27. The Hua Xia Solana ETF will be the third cryptocurrency spot ETF approved in the region after Bitcoin and Ethereum products. The ETF units will trade through OSL Exchange, with OSL Digital Securities and BOCI-Prudential Trustee Limited serving as sub-custodian and primary custodian, respectively. Each unit will represent 100 shares, and the minimum investment is approximately $100. —
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About the Authors:
Meagen Seatter is an Investment Market Content Specialist covering technology and life sciences. Based in Vancouver, she specializes in providing in-depth market analysis and investing insights.
Giann Liguid is a writer with a background in interdisciplinary studies and experience across security, food, and business sectors. He specializes in government-related topics and market dynamics.
Disclaimer: The authors hold no direct investment interests in companies mentioned in this article.
This article is provided by the Investing News Network (INN), your trusted source for investing success across North America, Australia, and the world.