Deregulation sounds great, right? Less red tape, more innovation. On crypto, we need to be very careful, but this time we should be encouraged to tread lightly. That is especially the case where the Trump family is concerned. Fast.
Deregulation = Unforeseen Systemic Risks?
Think of the 2008 financial crisis. Deflated, those same subprime mortgages, bundled and sold, became toxic assets that spread infection throughout the entire global economy. fast-collapsing crypto ecosystem Now, picture those so-called stablecoins — once trumpeted as the “safe” corner of crypto — as the new subprime. Trump's push to deregulate the crypto market, coupled with the Trump family's deep financial ties to firms like World Liberty Financial, creates a perfect storm for a similar systemic shock.
World Liberty Financial’s rapid growth, powered by its stablecoin and digital token products, is raising eyebrows. We’re discussing a largely unknown company where the Trump family will continue to grow rich on the hundreds of millions they will receive in fees and revenue. The SEC is playing nice with crypto. Investigations have been halted, a key crypto enforcement team has been dismantled. Now, who’s watching the henhouse?
As economist Eswar Prasad has rightly flagged, these risks have serious financial stability implications as well as the potential to finance illicit finance. This shouldn’t only be about preventing retail investors from getting burned on meme coins. It’s about stopping a potential crypto meltdown from pushing the whole financial system off a cliff. Remember Long-Term Capital Management? A single, apparently isolated hedge fund collapse came within a hair’s breadth of crashing the world economy. But crypto—which is largely unregulated and has deeply integrated itself with traditional finance—threatens to take that threat a step further.
Family Fortunes or Global Financial Health?
Let's be blunt: the optics are terrible. Not only is the Trump family personally invested in crypto, but Trump is actively pushing for policies which profit the industry while his family cashes out. This isn’t only about real or perceived conflicts of interest, it's about the smell of corruption.
To that end, Senator Elizabeth Warren is spot on to call out stories of Trump enriching himself and his family while gutting oversight. The Trump Organization claims that the president’s children run his business holdings. That assertion is simply impossible to believe. We've seen this movie before.
And of course, his recent foray into meme coins such as $Trump. A former president shilling crypto? It’s a three ring circus act that is totally undermining the credibility of the entire financial system. It’s the equivalent of a doctor prescribing cigarettes – total public trust betrayal.
Bitcoin Maximalism or Criminal Haven?
Trump’s dream of America being the “bitcoin superpower” is a fantastic line at a campaign rally podium. The reality is far more complex. Deregulation doesn’t only draw legitimate businesses — it draws criminals, too.
Consumer advocates have their hackles up over the rising tide of stablecoin and digital asset adoption. They caution that Chinese exporters and fentanyl manufacturers are increasingly using these tools for money laundering purposes. The Senate stablecoin bill, known as the “Genius act,” has been criticized by many stakeholders as a free pass to illegal conduct.
Think about it: a national stockpile of Bitcoin, championed by Trump, could easily become a slush fund for bad actors. And with Trump Media & Technology Group reportedly looking to introduce crypto investment products, the opportunity for abuse is huge.
We need to ask ourselves: are we willing to sacrifice financial stability and national security for the sake of short-term gains for the crypto industry and, more specifically, for the Trump family? The answer should be a resounding "no."
We need responsible regulation, not reckless deregulation. We need transparency, not opacity. We need oversight, not blind faith. Or else, Trump’s crypto gamble will bankrupted us all.
