Since Donald Trump returned to the White House, his administration has taken a friendly approach toward the cryptocurrency industry. Regulations have been scaled back, and this has coincided with the rapid rise of a crypto company called World Liberty Financial (WLF)—a firm in which the Trump family holds significant interests.
This overlap between political decisions and personal financial gains has raised alarms among watchdogs and members of Congress, especially those concerned about ethics and economic risk.
Trump has appointed individuals with strong ties to the crypto world to key roles, including leadership at the Securities and Exchange Commission (SEC) and a new position overseeing crypto and artificial intelligence— “czar”. Under their direction, the SEC has either dropped or paused investigations into several crypto firms.
Moreover, in early April, the Department of Justice (DOJ) disbanded a unit that previously handled major crypto-related cases, citing a desire to shift strategies and criticizing the former administration’s enforcement-heavy approach.
In late March, WLF rolled out its own stablecoin. The timing closely aligned with a Senate bill—nicknamed the “Genius Act”—which critics say could weaken oversight of digital currencies.
Observers are particularly worried that the relaxed rules may make it easier for bad actors, such as fentanyl producers or overseas money launderers, to exploit the system. Some watchdogs have already pointed to growing crypto transactions tied to illegal drug sales and foreign suppliers, especially in China.
Trump’s vocal support for digital currencies was on display at a recent cryptocurrency event where he pledged to dismantle the previous administration’s restrictions on the industry. Meanwhile, his family has actively promoted WLF, with Donald Trump Jr. and Eric Trump often appearing at events and online campaigns.
Not long before Trump’s inauguration, he launched a meme-inspired digital coin named $Trump. The family’s company has since announced multiple crypto ventures, including a collaboration with Crypto.com and a planned bitcoin mining operation dubbed American Bitcoin. The Trump Media & Technology Group, which operates Truth Social, has also started promoting crypto-related services.
All of this has led to growing concerns from figures like Sen. Elizabeth Warren and Rep. Maxine Waters, who have formally questioned the SEC about its decisions involving WLF. A notable case involves Justin Sun, a major investor in the firm, whose SEC case was recently dropped without explanation.
Though Trump has said he removed himself from direct involvement in his businesses, critics argue that the influence is still very present. Experts warn that the fusion of Trump’s regulatory power with his family’s crypto ventures poses a serious threat to both investor protection and broader financial stability. They say the lack of clear boundaries makes it difficult to know whether public policy is being shaped in the nation’s interest or the Trump family’s.
Enterprises like Bit Mining Ltd. (NYSE: BTCM) will be hoping that the involvement of the Trump family in crypto ventures doesn’t later trigger blowback against the industry when the federal leadership eventually changes.
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