John Kelly, his former Chief of Staff, says Trump “fits the definition of a fascist: someone willing to overturn Constitutional norms to meet his goals”.
The crypto industry has finally found its political champion in Donald J. Trump. For years, the sector struggled to find a voice in politics, someone who could channel its libertarian spirit and bring its ideas to a broader audience. Now, Trump is stepping into that role.
Trump takes the stage at the Bitcoin Conference in Nashville, expressing his admiration for crypto enthusiasts. He announces a Bitcoin Strategic Reserve and promises to free Ross Ulbricht. He also launches his own DeFi project World Liberty Financial complete with an insider governance model, a clear nod to crypto insiders.
Yet, this embrace of Trump has left some in the industry feeling uneasy. It’s not necessarily about favoring Kamala Harris or any other politician but rather about questioning whether Trump is a reliable ally. His history suggests he can be a fair-weather friend, quick to change his stance if it suits his interests.
Former White House officials from his previous administration have spoken about his unprincipled nature. John Kelly, his former Chief of Staff, says he “fits the definition of a fascist: someone willing to overturn Constitutional norms to meet his goals”. A former Trump White House official recently echoed similar concerns.
The Desire to Own the Crypto Issue
While the Biden Administration and Harris campaign have occasionally engaged with the crypto community, Trump’s team rejects any collaboration with Democrats. At the Bitcoin Conference in Nashville, Elon Musk was slated to join Trump. However, insiders and flight data revealed Musk turned back when Trump declined to share the stage. Trump wants to be the sole political figure linked to crypto.
Meanwhile, Democrats send mixed signals. As crypto-mining shifted to the US, red states welcomed the industry, while some Democratic states banned bitcoin mining over environmental issues. States like Texas promoted it for grid flexibility. A critical question remains: how would Trump respond if Democrats fully embraced crypto?
The crypto sector, seeking influence, has aligned with the GOP. Many campaign leaders in the industry are Republicans, and its preferred candidates are primarily from that party. Organizations like Stand With Crypto mobilize voters without endorsing figures like Senator Elizabeth Warren.
Ryan Selkis, formerly of Messari, made disparaging remarks about liberal white women. Although he can voice his views, such comments risk alienating key demographics, undermining efforts for broader crypto acceptance.
The Dangers of Single-Issue Voting
Supporting a candidate like Trump on a single issue like crypto means indirectly endorsing a range of other policies. When the industry donates $10 million to reinterpret the Howey Test, it’s also supporting policies like a “peace deal” on Ukraine, mass deportations, and opposition to abortion and transgender rights.
Aligning closely with Trump could bring unforeseen consequences. The opposition from the Biden Administration and the SEC over the past few years was challenging for the industry. However, tying the fate of crypto to a polarizing figure like Trump could introduce a whole new set of risks.
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