In a rare moment of foresight, Donald Trump declared in a 2021 interview with Fox Business that Bitcoin, the leading cryptocurrency, “looked like a scam.” At the time, his words seemed like just another controversial statement from a man known for promoting ventures like Trump University and Trump Vodka. “The currency of this world should be the dollar,” Trump said. “I don’t think we should have all of the Bitcoins of the world out there. I think they should regulate them very, very high.”
Trump’s warning appeared prescient when, just 18 months later, crypto evangelist Sam Bankman-Fried, founder of the FTX cryptocurrency exchange, was arrested and convicted on fraud charges. This scandal, combined with concerns over the environmental damage caused by cryptocurrency mining—an energy-intensive process powered by fossil fuels—raised alarms among critics. Some equated the industry’s energy consumption to that of entire European nations.
Yet, by 2024, as Trump sought to reclaim the White House, his stance on crypto had drastically changed. At a Bitcoin conference in Nashville, Trump promised to transform the U.S. into “the crypto capital of the world” if re-elected. He pledged to appoint regulators who “love” the industry and launched his own crypto venture, World Liberty Financial, with his sons Donald Jr. and Eric. The move aligned with other ventures, including selling $399 sneakers and $100,000 watches—purchases that could be made with cryptocurrency.
Surprisingly, Kamala Harris and the Democrats, typically the party of pro-consumer and pro-environmental policies, have not positioned themselves as crypto’s opposition. As Harris campaigned for the presidency, she signaled a softer stance toward the industry, seeking Silicon Valley’s deep pockets to finance her campaign. Harris held a fundraiser on Wall Street, where she told wealthy attendees that, as president, she would “encourage innovative technologies like AI and digital assets while protecting our consumers and investors.”
For good-government groups, this election has become a nightmare scenario. The cryptocurrency industry has poured an unprecedented $119 million into U.S. politics this year alone. The industry’s goal is clear: to block regulation that would protect everyday citizens from potential fraud, environmental harm, and market volatility. As Rick Claypool, senior researcher at Public Citizen, noted, “It’s pretty unprecedented.” He pointed out that crypto-backed TV ads, which played a role in defeating pro-consumer candidates like California’s Katie Porter and New York’s Jamaal Bowman, rarely mention crypto at all. “It’s more the standard focus group message,” Claypool explained, “that this politician can’t be trusted.”
Despite the crypto industry’s growing influence, only a small portion of the U.S. population—around 7%—actually invests in it. The majority of Americans remain indifferent to the topic, but the industry’s wealthy backers continue to pour money into both Republican and Democratic campaigns. Notably, Senate Majority Leader Chuck Schumer declared at a Crypto4Harris town hall that “crypto is here to stay!”
Meanwhile, the industry’s lobbying efforts have intensified. An estimated $30 million has been spent to support Ohio Republican Bernie Moreno’s bid to unseat Democratic Sen. Sherrod Brown—a race that could tip control of the Senate and impact decisions ranging from abortion rights to Supreme Court appointments.
The crypto industry argues that its rise has exposed inefficiencies in traditional banking systems. However, the risks associated with it—from fraud and market volatility to environmental damage—continue to outweigh any perceived benefits. This is why regulators like SEC chair Gary Gensler and FTC chair Lina Khan have pushed for stronger oversight, especially following the collapse of FTX.
As the 2024 election unfolds, the influence of Big Crypto serves as a stark reminder of the growing power of corporate money in American politics. “Every corporate CEO is watching this crypto money-in-politics playbook right now,” warned Public Citizen’s Claypool. He fears that other industries, like Big Oil, will soon follow suit, leveraging their financial resources to influence policies that favor them.
With millions of dollars pouring into campaigns, the question remains: who is advocating for the average citizen—the voters who want protection from financial scams and environmental harm? Even Trump, back in 2021, acknowledged that crypto regulation should be “very, very high.” How ironic it would be if, in the end, U.S. democracy isn’t brought down by political corruption, but by the unchecked rise of cryptocurrency.
