Trump's crypto 'sea change' upends Washington's finances

SUBSCRIBE & SAVE
Less than $3 per week
View Profile
The Explainer
Talking Points
The Week Recommends
Newsletters
From the Magazine
The Week Junior
Food & Drink
Personal Finance
All Categories
Newsletter sign up
In The Spotlight
Trump's crypto 'sea change' upends Washington's finances
By embracing digital currency, the White House is clearing a path for a new era in dubious self-enrichment
Newsletter sign up
Crypto investors have seized upon the Trump administration's enthusiasm for digital currencies, even as industry experts warn of a potentially rocky future for the volatile economy
(Image credit: Illustration by Stephen Kelly / Shutterstock / Getty Images)
Rafi Schwartz, The Week US
30 April 2025
President Donald Trump claims not to email or text and was impressed by the fact that "everything is computer" inside a Tesla. But for all of his Luddite tendencies, there's one field of technology that Trump has embraced since his return to the White House earlier this year: cryptocurrency. Not only has Trump positioned his administration as a champion of the digital currency industry at large, but his adoption of crypto is widely believed to be an avenue for personal enrichment as well.
'Eviscerating' financial boundaries
The "winds are shifting" at the Securities and Exchange Commission under Trump as the agency moves toward a "more structured, innovation-friendly approach to digital assets," said Forbes. At the same time, the president's personal and familial involvement in the crypto field — including the launch and sale of his eponymous $TRUMP memecoin — has "intensified scrutiny" of the agency's "independence." In particular, Trump's recently unveiled World Liberty Financial, a firm "largely owned by a Trump family corporate entity," is "eviscerating the boundary between private enterprise and government policy," said The New York Times. As "not only a major crypto dealer," Trump is also the "industry's top policy maker" who has "leveraged" his position in office "in ways that have benefited the industry — and in some cases his own company."
The impact of Trump's crypto participation extends beyond his personal wealth. In the past, there may have been Democratic lawmakers "sort of amenable to supporting" crypto-favorable legislation, said Duke University lecturing fellow on economics Lee Reiners to The Hill. However, they're now "getting a bit skittish" over Trump's "blatant" mixing of "financial interest with his political power."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
SUBSCRIBE & SAVE
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A 'sea change' or a 'crypto winter'?
Broadly, Trump's crypto focus and his efforts to roll back some of the restrictions imposed during his predecessor's administration have "unleashed a flurry of crypto deals" by companies "seeking to capitalize on lighter U.S. regulation," The Wall Street Journal said. There is "genuine interest" in the market for "taking advantage of this regulatory moment," said Ryne Miller, co-chair of the crypto practice at law firm Lowenstein Sandler, to the outlet.
At the same time, the Trump administration's crypto focus means that assets with "high price volatility" could pose risks "not only for investors but also potentially for financial stability" as a whole, said the Bank of Italy in a report published Tuesday. The risk is particularly acute given the "growing interconnections between the digital asset ecosystem, the traditional financial sector and the real economy," the Bank's report said. The report is "one of the first to have been published since Trump's imposition of global tariffs unleashed market turmoil," Bloomberg said. The "extreme negative sentiment" surrounding Trump's existing tariffs and future escalations is one of the "converging signals" suggesting an upcoming "new 'crypto winter,'" said industry leader Coinbase in its April monthly outlook.
In Washington, however, Trump continues to push the loosening of crypto regulations, and his own personal crypto investments, signaling a "total sea change" from just months ago, said crypto investment firm Castle Island Ventures founding partner Nic Carter to The Hill. Doomsaying predictions of global crypto collapse are just the work of "short-term folks in the industry that can’t see the forest for the trees."
Explore More
Cryptocurrency
Donald Trump
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from
Contact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.
Rafi Schwartz, The Week US
Social Links Navigation
Rafi Schwartz has worked as a politics writer at The Week since 2022, where he covers elections, Congress and the White House. He was previously a contributing writer with Mic focusing largely on politics, a senior writer with Splinter News, a staff writer for Fusion's news lab, and the managing editor of Heeb Magazine, a Jewish life and culture publication. Rafi's work has appeared in Rolling Stone, GOOD and The Forward, among others.
The basics of credit scores: how they are determined and why they matter
The Explainer
A higher credit score is better than a lower one
5 film franchises that warranted 5+ installments
the week recommends
'Shrek 5' is upon us. What other movie series have deserved this many follow-ups?
Why Bezos' new pickup could be a 'wrecking ball' for EV industry
Today's Big Question
Slate Auto's no-frills approach is a 'potential Tesla killer'
You might also like
'It is not enough to simply defend the status quo'
Instant Opinion
Opinion, comment and editorials of the day
Trump says he could bring back Ábgego García but won't
At a rally to mark his 100th day in office, the president doubled down on his unpopular immigration and economic policies
A 'meltdown' at Hegseth's Pentagon
The Defense Secretary is fighting to keep his job amid leaked Signal chats and staff turmoil
Reining in Iran: Talks instead of bombs
Trump edges closer to a nuclear deal with Iran—but is it too similar to former President Barack Obama's pact?
Tariffs: The quest to bring back 'manly' jobs
Trump's tariffs promise to revive working-class jobs, but today's labor market has moved on
Trump's 100-day approval ratings at historic low
Americans appear to be wary of Trump's sweeping tariffs and handling of the economy
Trump's war on academic freedom: how Harvard fought back
Talking Point
Political pressure on institutions compromises academic independence – and risks damaging America's ability to attract international talent
Judge blocks key part of Trump's elections overhaul
Colleen Kollar-Kotelly's decision temporarily bars federal officials from requiring Americans to prove they are citizens to register to vote
View More ▸
Contact Future's experts
Terms and Conditions
Privacy Policy
Cookie Policy
Advertise With Us
The Week is part of Future US Inc, an international media group and leading digital publisher. Visit our corporate site.
Future US, Inc. Full 7th Floor, 130 West 42nd Street