To see the GENIUS Act killed is a gut punch. We needed that bill. Without it, the U.S. is ceding its competitive edge and the ability to protect consumers, period. Instead of reform, we have to settle for partisan gridlock. I think this is all driven by Donald Trump’s increasingly out there support for crypto. This has nothing to do with good policy — this is purely self-enrichment — and it’s deeply, corruptly, and dangerously poisoning the well for sound regulation.

Profits Over People? Questionable Motives

Let's be blunt: Trump's sudden crypto conversion smells like snake oil. For years, he was silent, even critical. Now, suddenly, he's a crypto champion? What changed? The solution, as is too often the case, appears to be in his pocketbook. But his family’s crypto fortunes are bringing in millions. The touting of the new $TRUMP meme coin, offering a high roller dinner with the ex president as an incentive, is insulting, misleading and quite frankly, pathetic. It is a pretty brazen pump and dump, using his influence to enrich himself.

Think about it. What makes us think neutral policy is possible under these conditions? Depending on how this is done, the very people crafting that policy would stand to personally benefit from certain crypto assets. This is not a purely academic worry. Overall, this creates a very obvious and dangerous conflict of interest which erodes the entire integrity of the process. Those $300 million in trading fees amassed by Trump-affiliated entities since January should be raising some serious red flags. It’s difficult to make a case for the public good when the personal enrichment is so blatantly apparent.

Partisan Crypto Chaos: Divides & Distrust

Trump’s role isn’t just ethically questionable. It’s strategically catastrophic. But he’s planted himself firmly in the crypto industry’s corner. In doing so, he makes what should be a popular bipartisan issue into another political foot race. Let’s not forget, the GENIUS Act was a wholly bipartisan initiative. Once Trump began to sing crypto’s praises, Democrats naturally got nervous. So why on earth would they support legislation that they know will be spun—fairly or unfairly—as benefitting him and his close allies?

He is actively deepening the divide. The cryptocurrency space is already the Wild West, where distrust reigns and scam artists roam free. Others view it primarily as a refuge for fraudsters and money launderers. The danger of opportunism and possible foreign influence is notably exacerbated by Trump’s participation. The Binance investment, in particular, contributes to that bad perception. It unduly punishes a few bad apples, and it gives ammunition to those who want to quash innovation entirely and prolong the creation of a responsible regulatory framework. Due to the fundamentally self-serving agenda that animates Trump, we risk throwing out the baby with the bathwater.

Lax Laws: Long-Term Instability Looms

Here's my biggest fear: Trump's influence could lead to regulations that prioritize short-term gains over long-term stability and consumer protection. Imagine a world where rules are bent or changed to benefit politically connected crypto projects. This long awaited move has monumental implications for the broader market and retail investors. This isn’t far-fetched to think either, given his history.

We need smart regulations and regulatory conversations. These rules must be focused on the best economic principles and appropriate consumer protection from fraud and manipulation. We cannot accept any regulations that do more to inhibit the risks related to money laundering and illicit finance. We certainly don’t need poorly conceived regulations shoved down our throats to placate political campaign donors or increase the market capitalization of speculative meme coins. Some on the inside track of Trump are calling for a U.S. “strategic bitcoin reserve.” All this reminds us that this largely economic sounding idea is actually not a great economic strategy at all, it’s a market play.

We need to ask ourselves: Who benefits from lax regulations? It's not the average American investor. The second group is posers and fakers. It’s the insiders, the early adopters and those who are reckless with their capital. Trump's actions are creating a system where those with connections and resources can exploit the system, while ordinary people are left holding the bag.

We need to demand transparency and accountability. We need to ensure that policymakers are making decisions based on the best interests of the country, not on their personal financial interests. To do that we need to encourage independent analysis and objective debate, untainted by the influence of political agendas. Advocates for the space would do well to acknowledge that Trump’s embrace of cryptocurrency is a very real and dangerous distraction. It threatens to derail the responsible development of this important technology. It's time to call it what it is: a poison pill for US cryptocurrency policy.