Trump’s grifting tendencies:

Although Trump once labelled Bitcoin a “scam” in 2021, he has since transformed into one of the industry’s most vocal champions. Last autumn, he and his sons revealed their involvement in launching a new crypto firm called World Liberty Financial, from which they stand to benefit financially.

Just days before his inauguration, Trump unveiled his own personal meme coin, $Trump—a move heavily criticised by ethics watchdogs, economists, and industry observers for blurring the lines between public duty and private profit.

“This meme coin is the perfect example of Trump’s grifting tendencies merged with his administration’s embrace of crypto and disdain for regulation,” said Eswar Prasad, an economics professor at Cornell University.

Ethical Concerns and Conflicts of Interest

The mixing of Trump’s personal crypto interests with his political actions has sparked an outcry. Ethics experts warn that his influence on crypto policy could drive up the value of assets like $Trump, which his allies reportedly own up to 80% of.

“There’s clear potential for abuse,” said Richard Painter, former chief ethics counsel to President George W. Bush. “If Trump pushes pro-crypto policies, that alone could inflate the coin’s value, enriching him and his family.”

Former Federal Election Commission counsel Larry Noble echoed those concerns, noting that the anonymity of crypto transactions could allow donors—foreign or domestic—to quietly funnel money into Trump’s pockets by simply buying his token.

A Pro-Crypto Agenda

Trump’s administration is wasting no time. He recently issued an executive order creating a working group to explore a national cryptocurrency reserve and new digital asset regulations. He’s also appointed Paul Atkins, a former SEC commissioner and pro-crypto advocate, to lead the agency again.

Further boosting crypto’s profile, Trump named Silicon Valley investor David Sacks, known for his connections to Elon Musk and his support of crypto, as the White House’s first Crypto and AI Czar.

At the “crypto ball” held during Trump’s inaugural celebrations, Sacks proclaimed: “The reign of terror against crypto is ending.” That same night, Trump promoted the launch of $Trump on his Truth Social platform, sending its price soaring and reportedly boosting his paper net worth by billions.

Meanwhile, Trump’s wife Melania also launched her own meme coin, $Melania, further entrenching the family’s involvement in the sector.

Industry Influence and Lobbying

The crypto industry has ramped up its political spending to support Trump and his allies. Companies contributed millions towards Trump’s inauguration events, including the “crypto ball.” Major firms such as Ripple donated generously—pledging $5 million in their own token—while employing high-powered lobbyists with deep ties to Trump, including his former chief of staff Reince Priebus and longtime fundraiser Brian Ballard.

Trump has rewarded the industry’s backing by pushing deregulatory policies and promising to sack current SEC chair Gary Gensler, whom crypto firms oppose for his tougher stance.

At a major Bitcoin conference last year, Trump declared he would make America “the Bitcoin capital of the world,” a sentiment he echoed when promoting World Liberty Financial—his family's crypto venture—on Elon Musk’s X (formerly Twitter).

Ties to Risky Players and Foreign Powers

World Liberty was prominently featured at a lavish Bitcoin event in Abu Dhabi, where Trump’s son Eric Trump gave a keynote address. The event was also attended by Justin Sun, a controversial Chinese-born entrepreneur who reportedly invested $75 million into the firm. Sun, who founded Tron, faces multiple fraud charges from the U.S. SEC.

These associations, combined with Trump’s policy promises, have alarmed experts who fear crypto’s lack of transparency could be exploited by bad actors.

A recent report from blockchain analysis firm Chainalysis found North Korean hackers stole $1.34 billion worth of crypto in 2024—double the previous year’s figure. These stolen assets are believed to be funding the regime’s nuclear weapons programme.

Domestically, the collapse of high-profile firms like FTX, whose founder Sam Bankman-Fried was sentenced to 25 years in prison, has drawn attention to the industry’s instability. The FBI’s 2023 crime report revealed that crypto-related fraud cost Americans $5.6 billion last year—a 45% increase.

Experts Call for Stronger Regulation

Critics are urging Congress to tighten crypto laws rather than ease them. “There’s a real danger that the next financial crisis could stem from an overheated cryptocurrency market, much like the 2008 crash resulted from poorly regulated financial products,” said Painter.

Senator Elizabeth Warren also issued a stark warning: “Trump should be focused on lowering costs for working families—not conning them into pumping up the value of his meme coins.”

Representative Jamie Raskin warned that coins like $Trump could bypass campaign finance laws entirely, allowing wealthy donors or even foreign interests to funnel vast sums to a president under the guise of market transactions.

Legal Experts Warn of Criminal Exploitation

Veteran prosecutors are also sounding the alarm. “Crypto is the newest frontier for fraud,” said Stefan Cassella, a former federal prosecutor. “It’s filled with complexity and jargon that shields bad actors and confuses ordinary investors.”

Former Justice Department fraud chief Paul Pelletier added: “Cryptocurrency has become an anonymised digital highway for organised crime. Unless the US steps up its surveillance and enforcement capabilities, rogue nations like North Korea will continue to exploit these gaps with impunity.”

Despite mounting concerns, the Trump administration shows no signs of slowing down its pro-crypto push—backed by an industry eager to profit from regulatory rollbacks and their newfound influence in Washington.