US President Donald Trump and his family are reportedly earning billions through cryptocurrency initiatives since his return to office, taking advantage of a market with minimal regulation that he has significantly influenced.
Estimations indicate that their financial gains from various digital currencies, including meme coins and stablecoins—which are designed to maintain a constant value—exceed $5 billion (€4.25 billion) on paper, leading to allegations of unprecedented profit-making by a sitting president.
The Trump family’s crypto earnings are mainly derived from two companies: World Liberty Financial (WLF), a decentralized finance platform allowing users with $WLFI tokens to participate in lending decisions, and American Bitcoin Corp. (ABTC), a publicly traded bitcoin mining operation.
WLF has garnered millions from $WLFI token sales linked to Trump’s name, while ABTC, supported by his sons, has substantial bitcoin holdings and witnessed a stock increase of 110% at its launch, eventually closing 16.5% above its initial price of $6.90.
Concerns over Influence and Access
Critics argue that Trump’s dual role as both crypto benefactor and policymaker diminishes public trust and confuses the distinction between governance and personal gain. Attorney Ross Delston warns that these crypto ventures could provide problematic figures an opportunity to gain influence with Trump through investments in his digital currencies.
While Trump and his sons currently cannot sell their tokens in WLF, they are expected to realize significant profits in the future. The White House maintains that no conflicts of interest exist.
Shifting Policy and Deregulation
Trump’s pro-cryptocurrency stance upon returning to office has surprised some, considering his earlier dismissal of digital currencies like bitcoin as a “scam.” He now aims to position the United States as a global crypto hub.
High-Profile Events and Political Perks
The integration of cryptocurrency into Trump’s social agenda is evident in exclusive events such as White House dinners hosted for digital asset influencers, raising concerns about the merging of political power and private financial interests. One notable event was the Crypto Kings dinner at Trump National Golf Club, where significant investors were rewarded with personal access to Trump.
Regulatory Backtracking and Calls for Action
Meanwhile, federal regulators have adopted a hands-off attitude toward crypto oversight, undoing many of the safeguards established during the Biden administration in favor of fostering cryptocurrency growth. This shift has led to the suspension of strict regulations previously enforced by the SEC.
Growing Concerns over Political Loyalty
Concerns regarding political loyalty within government agencies are mounting, as dismissals of officials not aligning with the Trump administration become more common. This has cultivated an environment where regulators are hesitant to question Trump’s crypto initiatives despite ethical issues being raised.
Lawmakers are now advocating for strengthened oversight and transparency concerning digital currencies, emphasizing the need for clearer regulations and protections for ordinary users. Critics caution that the current climate favors insiders while jeopardizing the average user.
