Donald Trump’s overtures toward cryptocurrency have set off a firestorm of criticism. A bunch of you are blowing the whistle on egregious conflicts of interest and the ostensible use of public office for private gain. His administration's swift moves to ease regulations on the crypto industry, coupled with his family's financial ties to crypto ventures, have drawn sharp criticism from watchdogs and political opponents alike. This move marks a remarkable reversal from Trump’s previously negative stance on crypto. Either way, it casts serious doubt on the honesty of his administration and foreshadows a reality of deep corruption.
These recent, pro-crypto moves by Trump have, in turn, directly benefited some of his biggest campaign donors—many who head up major crypto firms. This convergence of strong political support and significant financial profit has led many to wonder about the motivations driving the administration’s regulatory rollback. Judge for yourself. Trump critics are right that he’s using the presidential bully pulpit to line his own pockets – and those of his crypto cronies.
Trump’s family plays an active role in the crypto space. They allegedly collect 75% of PER token sales from the WLF. Eric and Don Jr., along with Zach Witkoff, have been tireless evangelists of WLF across the country’s farthest corners. Zach happens to be the son of Steve Witkoff, Trump’s special envoy to the Middle East. Of special note, real estate billionaire Steve Witkoff is a founder and principal stakeholder in WLF. This direct involvement dramatically deepens and distorts the lines between public service and private enrichment.
Meanwhile, the Trump administration is rushing to deregulate every facet of the cryptocurrency boom. This change is being pushed by a number of agencies including the Securities and Exchange Commission (SEC) and Justice Department. Others read these moves as part of a concerted effort to create a positive climate for the crypto sector. This risks undermining the bedrock principles of investor protection and market stability. On balance, Trump’s continued push for deregulation will lead to potentially dangerous and catastrophic outcomes for the crypto industry in the long term.
This intense push for crypto wealth and deregulation completely undercuts Trump’s prior crypto efforts. In July 2019, he tweeted that "Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade," and noted their value was "highly volatile and based on thin air." In 2021, he called Bitcoin a “ scam ”. This sudden U turn has sparked criticism of hypocrisy and opportunism.
In fact, during his presidency Trump leveraged the full power of his presidential platform to further his crypto interests. Simultaneously, he rolled back regulations at an unprecedented rate that many have decried as corrupt. That $Trump memecoin just happened to be released days before his upcoming presidential inauguration. It generated tens of millions of dollars for Trump and his associates. A similarly publicized dinner was held on May 22nd for the 25 biggest memecoin purchasers. The very next day, they took in a White House tour, all orchestrated to pump $Trump sales and create nearly $148 million.
"With his pay-for-access dinner, Trump put presidential access and influence on the auction block." - Richard Blumenthal
Since his reelection, Trump’s speculative foray into crypto has increased his paper fortune by over 2 billion dollars. Experts believe it currently extends to at least tens of billions of dollars. He’s made eliminating regulatory burdens a daily obsession. In so doing, he’s living up to his 2020 pledge to make the US the “crypto capital of the planet” and to stop the “war on crypto.”
Indeed, a number of well-known crypto leaders have already expressed their dismay at Trump’s efforts. Senator Elizabeth Warren has been particularly vocal, stating that "Donald Trump has turned the presidency into a crypto cash machine."
"Donald Trump has turned the presidency into a crypto cash machine." - Elizabeth Warren
Fellow critics are quick to second this point, particularly regarding the potential for abuse and erosion of the public’s trust.
"Self-enrichment is exactly what the founders feared most in a leader – that’s why they put two separate prohibitions on self-benefit into the constitution." - Paul Rosenzweig
"Trump’s profiting from his presidential memecoin is a textbook example of what the framers wanted to avoid." - Paul Rosenzweig
Read our discussion with the legal experts that have weighed in on the constitutional implications of Trump’s actions.
"I don’t think there’s been anything like this in American history." - Richard Briffault
"Trump is marketing access to himself as a way to profit his memecoin. People are paying to meet Trump and he’s the regulator-in-chief. It’s doubly corrupt." - Richard Briffault
The ethical issues raised by Trump’s potential crypto business interests have already led to calls for increased regulation and transparency.
"We must ban Trump-style crypto corruption so all elected federal officials – including the president, vice-president and members of Congress – cannot profit from shady crypto practices." - Jeff Merkley
Donald Trump’s recent foray into the crypto space has created quite a stir. In so doing, it poses sobering questions about conflicts of interest, ethical lines, and the corrosive power corruption tends to exercise over powerful men. As the investigation continues, the public will be watching closely to see how these issues are addressed and what measures are taken to ensure accountability and transparency in government.
"The scope and scale of Trump’s corruption is staggering – I’ll continue to demand answers." - Richard Blumenthal
"I have never seen such open corruption in any modern government anywhere." - Steven Levitsky
The third aspect of Trump’s corruption is that it doesn’t only benefit him personally. They could undermine the stability and integrity of the overall crypto market. The industry’s accelerated pace of deregulation presents new possibilities. While it is true that the technology opens new avenues for fraud, manipulation, and other illegal activities related to cryptoassets.
"Trump’s crypto schemes are the Mount Everest of corruption." - Jeff Merkley
The concerns surrounding Trump's crypto dealings have sparked a broader debate about the role of money in politics and the need for stronger safeguards against corruption. Critics are giving sharp new warnings about the state of the system. They claim that the rich and the powerful have far too much political power which corrupts democracy and proper government.
"Nobody should be allowed to use their public positions while in office to enrich themselves." - Charlie Dent
The Donald Trump crypto controversy is only going to intensify over the next few months. Get ready for a wave of legal challenges, congressional investigations, and scrutiny more intense from the Media and the Public. Here’s how these recent developments have the potential to shape the future of the rapidly growing crypto industry. Even more troubling, they raise profound doubts about the legitimacy of the American political system.
"The ‘genius act’ fails to prevent sanctions evasion and other illicit activity and lets big tech giants like Elon Musk’s X issue their own private money – all without the guardrails needed to keep Americans safe from scams, junk fees or another financial crash." - Elizabeth Warren
