Trump's sudden embrace of crypto, after years of bashing it, isn't just a political flip-flop. It's a flashing red light for financial integrity. And we’re not simply referring to a former president getting rich. Instead, we’re watching them enable a systemic meltdown. Deregulation, self-serving conflicts of interest, and a flagrant refusal to acknowledge ethical lines are at the heart of this crisis. Think Enron, but with memecoins.
Deregulation Opens Pandora’s Box
Remember the 2008 financial crisis? It was driven by wild deregulation and exotic financial vehicles that no one could explain. Trump’s reinvigorated attempt at deregulating crypto hits a little too close to home. It’s the equivalent of giving a loaded gun to a toddler and hoping they don’t use it to play Games of Death.
The crypto industry, already a haven for scams and volatility, has a vested interest in a lack of oversight. Compliance relief regulations support propagating Trump’s crypto empire, including World Liberty Financial (WLF) and its soon to be released USD1 stablecoin. That implementation creates new worries, primarily regarding the downsides. This culture has created a rampant environment for market manipulation and insider trading. As a consequence, it might produce a pernicious perverse bubble that crashes regular investors. Just consider your retirement savings disappearing because some politician made the mistake of betting on Dogecoin 2.0.
Political Favors Bought With Crypto
Follow the money. That crypto financiers are donating aggressively to Trump’s campaigns, and in turn, they’re receiving policy favors. It’s the very definition of regulatory capture, where the industry itself is allowed to write its own rules. Or maybe like Justin Sun who is currently under SEC investigation. He made a massive, indirect contribution to Trump, and was rewarded with the appointment as chief advisor to WLF. Then the SEC lawsuit against him was put on hold. Coincidence? I think not.
This goes beyond the quid pro quo that might get charged under bribery, this is about the hollowing out of faith in our institutions. When political pressure drives regulatory actions, it causes the public to distrust the system. This is how our democracies crumble, not with a bang, but with a Bitcoin.
Family Profiting From Crypto Policy
Speaking of the Trump family, they’re very interested in getting involved in the crypto space. Simultaneously, they’re shaping crypto policy, producing a massive conflict of interest. They’re really just making the rules of the game while they’re playing the game themselves, with loaded dice. As the picture emerges, Trump’s share of the WLF platform looks bigger than that because WLF has raised hundreds of millions in capital before ever launching. His sons are invested in Bitcoin mining. They create memecoins and dump hundreds of millions, sometimes billions.
How can we ever expect reasonable regulation when the ones developing the regulations stand to gain financially from the result? It's like having the fox guard the henhouse, except the fox is writing the farm's security policy.
Ethical Standards Disappear Completely
Trump's actions are setting a dangerous precedent. It is instead signalling that ethical considerations come after what makes money. The arbitrary and political dismantling of the Justice Department’s entire cryptocurrency investigative team suite just after Trump took office just about tops the list. It sends a clear message: accountability is optional, especially if you're politically connected.
This conflict of interest for the former President is completely unacceptable, especially given the lack of transparency surrounding the Trump family’s crypto holdings and dealings. We are calling for complete transparency. Routine independent investigations would help make clear whether laws were being violated and would help protect the public interest.
Systemic Risk Looms Large
The ultimate threat is systemic risk. Whether he realizes it or not, Trump is crafting a perfect storm for a financial crisis. He achieves this by gutting regulation, greasing political donors with government policy allowances and letting obvious self-dealing run riot.
The crypto market at any point tends to be highly volatile and easily susceptible to manipulation. Now add in a layer of regulatory capture and ethical erosion, and you have a recipe for disaster. After all, the next financial crisis is likely not going to come from subprime mortgages. Rather, it might be from wild west stablecoins and memecoins being pumped by political chads.
What we require now are greater regulatory oversight, improved transparency, and a reinvigorated dedication to ethical practices in the crypto environment. The future of our economy rests on it. Letting Trump’s crypto playbook serve as the blueprint for another economic crash would be a profound mistake. It's time to wake up and demand accountability before it's too late.
