Latin Times
A new report from the Center for Political Accountability (CPA) warns of “profound risks” as Donald Trump‘s crypto reserve plan accelerates deregulation and deepens industry ties to his administration.
Cryptocurrency firms have increasingly inserted themselves into U.S. politics, spending over $134 million during the 2024 election cycle to influence key races, the Guardian reported.
Following Trump’s return to power, regulatory oversight of crypto has weakened, with the SEC dropping lawsuits against major crypto exchanges Kraken and Coinbase.
Trump’s administration has also taken rapid steps to support the industry, including creating a “crypto strategic reserve” and appointing crypto investor David Sacks as the administration’s “crypto czar.”
On Thursday, Trump signed an executive order establishing the U.S. Crypto Reserve, a move aimed at cementing the country’s dominance in the digital asset space. The next day, the White House hosted a cryptocurrency summit attended by industry leaders, including representatives from Coinbase, a company that made a $1 million donation to Trump’s inaugural fund.
Critics argue these developments reflect a “pay-to-play” dynamic, where the crypto industry’s political contributions directly shape government policy.
The CPA report warns that Trump’s pro-crypto policies could lead to regulatory gaps, exposing investors and the broader financial system to potential instability.
Originally published on Latin Times
