We all know that the SEC is blindfolded and groping in the dark when it comes to regulating crypto. Hester Peirce’s “floor is lava” analogy strikes too close to home. While regulators play catch-up, a much more immediate and potentially dangerous game is unfolding: Donald Trump's foray into the world of cryptocurrency. This isn’t simply a case of one former president experimenting with a hot new asset class. Unparalleled conflicts of interest would be created. We are in danger of shredding ethical lines, and I think we’re at a moment where personal profit is impacting public policy decisions.
Memecoin Dinners: Access for Sale?
Senator Ossoff’s suggestion to impeach over the “Official Trump” memecoin dinner may sound like an overreaction. Consider the optics. The wealthiest 220 holders of the TRUMP token, which has profited many from a cryptocurrency based on the former president, will be treated to a swanky dinner. This exclusive event is happening at Trump’s private golf club. Background checks are performed. KYC watchlists are avoided. This won’t be your typical political meet-and-greet. It’s a carefully curated affair that bestows access to political power—and that’s really problematic.
Now, I’m not suggesting that every single individual sitting around that dinner is out to purchase influence. The catch The opportunity here is enormous. Next, it dangles future funding like a carrot to those who are best positioned to reap the rewards of positive policy decisions. And that opportunity, we would argue, is the real danger.
Executive Orders: Personal Gain Foremost?
Here's where the "unexpected connection" comes in. You know all those executive orders that Trump signed while president? Now imagine those orders directing and framing the cryptocurrency and digital asset industry. That would be a tragedy — especially if he does regain the White House in 2024. If Trump has a significant personal financial stake in that industry – as appears to be the case with the TRUMP memecoin or the World Liberty Financial DeFi project – we’ve got a huge problem. How do we know his policies will focus on the best interests of the country instead of his own financial interest?
This isn't hypothetical. We’re discussing the possibility for major policy decisions to be incredibly impacted by personal financial interest. It’s a dangerous and exploitive situation, and one that requires a close and calibrated eye.
The SEC’s inability to get a handle on regulating crypto is no secret. The absence of consistent rules leaves a vacuum, an incubator for shady and fraudulent practices. The issue goes beyond regulatory whiplash. Specifically, it’s the combination of audacity and hypocrisy of a former president trying to cash in on his previous—and possible future—access to power.
| Scenario | Potential Conflict | Ethical Implication |
|---|---|---|
| Executive Order easing crypto regulations | Increased value of TRUMP memecoin holdings | Using presidential power for personal enrichment |
| Government contracts awarded to World Liberty Financial DeFi project | Direct financial benefit to Trump's business ventures | Favoritism and abuse of power |
| Lack of enforcement against pump-and-dump schemes involving TRUMP memecoin | Protection of personal investment at the expense of public trust | Negligence and disregard for investor protection |
Looming Conflict: Who Protects Us?
Who is going to hold him accountable? Will the SEC, already at a loss in how to proceed even against much easier targets in the space, want to go toe to toe with a former president. Will Congress be willing to pursue an honest and thorough investigation, or will election-year partisan politics intervene?
This is not only because we dislike Trump personally, it’s the precedent this sets. Leading indicators A future former president can do so freely, having visited apparently conflicted crypto ventures with limited consequences. That begs a dangerous question though: what does allowing that teach future leaders? It demonstrates how easily ethical boundaries can be dismissed. Instead personal gain trumps the public trust, and the powerful know that the rules don’t apply to them.
We, as civic-minded citizens, need to use every means possible to demand transparency and accountability. We need to continue to take our elected leaders to task to address these possible conflicts of interest. What is more important is that they decide policy not in the interests of the country, but rather for the personal financial benefit of anyone, regardless of the power that they may have. The clock is ticking, and with it the integrity of our financial system and our democracy hangs in the balance.
We, as citizens, need to demand transparency and accountability. We need to pressure our elected officials to investigate these potential conflicts of interest and to ensure that policy decisions are made in the best interest of the country, not the personal financial interests of any individual, no matter how powerful they may be. The clock is ticking, and the integrity of our financial system – and our democracy – is at stake.
