Is Trump betting the farm on Bitcoin? It sure looks that way. His recent affection for crypto, professed as an advocacy for financial freedom, is not merely a political turnaround. It’s a risky wager with dangerous repercussions for retail investors and the future of financial regulation. So let’s start with the big question. Is this really about giving power to the people, or is it just about enriching a connected, elite few, maybe even members of the Trump family?
Deregulation's Promise Versus Very Real Peril
Trump’s pledge to fire Gary Gensler has the crypto bro’s excited. It’s no surprise then that so many in the industry see Gensler, the SEC chair, as public enemy number one. His punitive enforcement actions have stoked this perception. Before we pop the cork, we need to discuss what deregulation is actually going to entail.
On the one hand, more light touch regulation would certainly encourage innovation and investment. Now, picture a sandbox where crypto companies can develop and innovate free from the burdens of regulatory red tape. This could result in both amazing new technologies and new financial products.
It’s a recipe for chaos. A wild west where scams are the order of the day, market manipulation is expected, and retail investors are easily preyed upon. We need only look at the thousands of crypto projects that have already failed, leaving hurt investors in their wake. Is that really what we want to do by making it easier for these scams to run wild?
Don’t get me wrong, I like innovation as much as the next person, but I’m a fan of responsible innovation. We want a thoughtful regulatory framework that keeps consumers safe while not squelching innovation. Deregulation appears more an anti-consumer move than a shared belief in promoting financial independence. Instead, it’s really more like handing a loaded gun to a three-year-old.
Financial Freedom Or Trump Family Enrichment?
The MAGA-crypto alliance is the new Cinderella story turned freak show that they’re pitching it to you as— a perfect marriage of free speech and decentralized finance. J.D. Vance and Trump’s sons are not alone in singing this tune. In short, bitcoin is the cutting edge tool for liberation, they tell us. Don’t overlook the Trump family’s very real financial interests in the crypto space, either.
- Meme Coins: Really?
- Crypto Firms: Convenient, isn't it?
- Bitcoin Investments: Follow the money.
One cannot blame anyone for shaking off that feeling considering that Trump’s pro-crypto push is at least partially motivated by self-interest. The lines between pro-Trump and pro-crypto are becoming increasingly indistinct, and we should all be profoundly troubled by that connection. Does he actually care about helping you get to financial independence? Or is he simply looking for a new gimmick to pad his deliveroo dividends. I don’t think it’s irresponsible of me to be nervous about what this could mean.
Think about it this way: A politician advocating for lower taxes on real estate while simultaneously owning a vast real estate empire. The potential for conflicts of interest here is clear. The same applies here.
"America First" On A Borderless Blockchain?
The deep irony here is that Trump’s “America First” policies are a perfect fit for a borderless technology like crypto. Crypto, by its very nature, is global and decentralized. That’s because it goes beyond borders and is not directly tied to the political whims of any government. And how does that square with a deep, Trumpian nationalist agenda?
The bubble of these contradictions are the “Made in America” crypto investment funds that are being championed by Trump-friendly lawmakers. The goal, of course, is to re-shore manufacturing jobs back to the US by funding domestic crypto projects through federal investment. But crypto is different, because crypto is inherently global, there is no such thing as a made in america crypto investment funds. It’s as if we’re trying to create a walled garden that entirely encircles the internet. The idea is absurd.
This has nothing to do with job creation or making the American economy more competitive. It's about branding and political positioning. Reach both the hearts and minds of Trump supporters. Convince them that crypto is just another way to achieve that “Go get ’em tiger, and save America while you’re at it,” message.
We all need to be on the lookout for this insidious narrative. We believe crypto can be an incredible force for financial inclusion and innovation. It shouldn’t be co-opted by narrow political agendas, or used as a political football in a broader game of power. Otherwise, we run the danger of undermining the very principles of decentralization and financial freedom that crypto was built upon.
Trump's crypto playbook is a risky gamble. Anti-regulatory fervor deregulation will light a fire of innovation and melt the chains of financial oppression. Voters seem ready to adopt his dream of a crypto-fueled America. The stakes are high. If he’s mistaken, the damage may be irreparable. Are we willing to take that risk?
Trump's crypto playbook is a risky gamble. It's a bet that deregulation will lead to innovation, that financial freedom will prevail, and that voters will embrace his vision of a crypto-powered America. But the stakes are high. If he's wrong, the consequences could be devastating. Are we willing to take that risk?
