Donald Trump, the Republican presidential nominee, has pledged to make the United States the “crypto capital of the planet” if he wins the White House in 2024. However, his new venture into the cryptocurrency market raises significant concerns about potential conflicts of interest should he regain the presidency.
Amid his ongoing presidential campaign, Trump has launched World Liberty Financial, a platform for trading cryptocurrencies, which he is actively promoting on the same social media channels used for his political campaign. His sons, Donald Jr. and Eric, along with his daughter-in-law Lara Trump, are also endorsing the new platform. Lara, who is married to Eric, serves as co-chair of the Republican National Committee, further intertwining the Trump family’s business and political interests.
Trump’s history of blending politics with personal business is well-documented. During his previous term in the White House, he frequently promoted his hotels and golf courses. More recently, he has been marketing various products, including sneakers and shares in his social media company, while running for president. The launch of World Liberty Financial, however, adds a new layer to this mix, one that could potentially see Trump’s personal fortune grow significantly if he wins and implements pro-crypto policies.
“Taking a pro-crypto stance is not necessarily troubling; the troubling aspect is doing it while starting a way to personally benefit from it,” said Jordan Libowitz, a spokesperson for Citizens for Responsibility and Ethics in Washington, a government watchdog group. “The success of this could be very tied to American economic policy.”
World Liberty Financial, expected to operate as a borrowing and lending service similar to the recently hacked Dough Finance, has many details yet to be disclosed, including the exact stakes Trump and his family members hold in it. The platform has already sparked confusion, with Lara Trump posting about the venture’s goals, only for Eric Trump to later claim that she and his sister Tiffany had been hacked.
Trump’s stance on cryptocurrency has evolved dramatically over the years. In 2019, while serving as president, he openly criticized cryptocurrencies, tweeting, “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.” Now, he has reversed course, advocating for a “crypto army” as part of his campaign and attending a Bitcoin conference in Nashville, where he pledged to create a bitcoin “strategic reserve” and make the U.S. the global leader in cryptocurrency.
If elected, Trump has also suggested that he would exert more control over U.S. monetary policy, potentially pressing the Federal Reserve to lower interest rates. He has promoted decentralized finance (DeFi), which aims to disrupt traditional finance by using public blockchain spaces, and has vowed to block the creation of a Federal Reserve-administered Central Bank Digital Currency, a concept that is still under exploration but opposed by many crypto advocates.
Trump’s embrace of cryptocurrency is seen by some as a strategic move to connect with younger male voters and conservative influencers who are skeptical of government control over markets. Dustin Stockton, a pro-Trump activist turned crypto influencer, expressed his support for Trump’s involvement in the crypto space, saying, “The Trump family’s engagement and involvement, and learning what it is that underlies crypto, I think is actually a really positive thing.”
Stockton also criticized the Biden administration’s approach to cryptocurrency regulation, citing the Securities and Exchange Commission (SEC) under Gary Gensler, which has pursued legal action against major crypto firms like Coinbase and Binance. Despite an executive order on digital assets issued by the White House in 2022, no substantial laws have been passed by Congress to regulate the industry.
“There’s no clarity and there’s selective and arbitrary enforcement of regulations,” Stockton said, adding, “Frankly, I’d like to see all members of government get a better understanding of what this is.”
As Trump continues to intertwine his political ambitions with his business ventures, the potential for conflicts of interest looms large, raising questions about the ethical implications of his latest foray into the world of cryptocurrency.
