You've seen the headlines. Trump’s all-in on crypto. Memecoins, deregulation, cozy dinners with crypto billionaires. However, lurking under the surface of this digital gold rush is a looming economic tsunami. This is no small shake up. It’s a systemic failure fueled by rampant capitalism and a tragic misjudgment of risk.

Unregulated Crypto is a Ponzi Scheme?

Let's be blunt. The future of crypto In many respects, today’s cryptocurrency ecosystem resembles a high-tech Ponzi scheme. This is particularly the case with the deregulation initiatives that Trump seems to be promoting. Hear me out. Takeaway that the market value of nearly all cryptocurrencies is largely based on speculation and expectation, with little or no underlying asset or real-world economic utility. And we always need new investors to raise prices. This would create a system where early adopters like large holders of the world’s leading memecoin or other regulatory arbitrageurs are rewarded.

Think about it: Trump hosts a dinner for $TRUMP memecoin holders, raising millions from anonymous sources. Are we truly creating an environment that encourages innovation? Or is it simply producing a self-fulfilling prophecy by artificially upping a token’s worth purely on his endorsement alone? What happens when the music stops? When the new investors dry up? The whole edifice collapses, leaving millions of people with assets that are no longer worth anything. It’s not just about the individual loss it visits upon the person receiving that wealth through homeownership.

And here's the unexpected connection: remember the 2008 financial crisis? It was driven by a lack of transparency and accountability through sophisticated financial instruments (mortgage-backed securities) that almost nobody understood and almost nobody regulated. Crypto, in its current deregulated form, is the 21st-century equivalent – a non-transparent system that is easily manipulated and subject to abuse. According to the FBI, consumers lost $5.6 billion to crypto fraud in 2023 alone. This mind-blowing figure is only a small window into the enormous crises yet to come.

Deregulation Equals Open Invitation to Fraud

The Trump administration has been working aggressively to roll back any and all aspects of cryptocurrency regulation. It’s like they’re removing the locks from the bank vault and leaving the door ajar. The SEC is pulling back on enforcement. At the same time, the Justice Department is minimizing its place as a “digital assets regulator.” This has opened a green light for scammers, money launderers and rogue nations.

Consider the Binance deal, where Trump's allies played a key role in a massive investment despite Binance's history of money-laundering violations. Or the recently passed Senate stablecoin bill, which has come under fire for loosening regulatory controls and undermining protections for consumers. These events are not unique occurrences. Together, they make up a bigger puzzle, painting a very different yet truly alarming picture of a system that has been purposefully gutted for the benefit of a few.

This is where the surprising link back to the Savings and Loan crisis of the 1980s comes in. Deregulation paved the way for predatory lending, rampant fraud, incompetence, and an eventual billion-dollar taxpayer bailout. If we’re not careful, we will make the same mistake in a different way—with cryptocurrency now serving as the on-ramp to unacceptable financial devastation. We’re not discussing some rhetorical bagatelle here, we’re talking about North Korean hackers stealing billions with which to fund weapons programs. What we’re describing is an environment in which fraud can run rampant, leaving everyday Americans to pick up the tab. This is no longer just a case of “caveat emptor”—this is a systemic failure in the making.

Conflicts of Interest on Steroids

It’s not just a matter of policy failure—it’s a matter of personal enrichment. Trump’s deep involvement in crypto endeavors should set alarm bells ringing. His family’s reported 75% take off crypto token sales and their chummy connections to crypto billionaires just stink of corruption. Still, it’s a level of blatant self-dealing that cuts at the heart of our democracy.

In these countries, leaders use their power to line their own pockets and provide for their friends at the expense of the rest of their country. We are dangerously close to implementing that type of system. When a president uses his office to promote his personal crypto ventures, it erodes public trust and creates a system where the rules don't apply to everyone.

His press secretary’s claim that going to a crypto gala is “personal time” dog-ate-my-homework excuse. The Trump Organization claiming his business interests are in a trust managed by his children is a transparent attempt to deflect criticism. We're not fools. We ain’t mad at the crooks, as we see the conflict of interest and the outcome it can create.

We simply can’t let Trump’s crypto gamble threaten our economic future and that’s what we’re asking you to urge President Biden to do. The stakes are too high. The time to act is now. We can’t allow greed and deregulation to continue driving our economy off the cliff.

  • Demand Transparency: Contact your elected officials and demand stricter regulation of the cryptocurrency market.
  • Educate Yourself: Don't fall for the hype. Understand the risks before investing in cryptocurrency.
  • Hold Accountable: Demand that Trump and his allies be held accountable for any conflicts of interest and potential violations of the law.

We can't afford to stand by and watch as Trump's crypto gamble jeopardizes our economic future. The stakes are too high. The time to act is now. Don't let greed and deregulation crash our economy.