The Crypto Industry's Risky Bet on Trump

This year, the crypto industry finally found a political champion in Donald J. Trump. For years, the industry had struggled to find a voice in politics, someone who could articulate its vision of freedom and bring its ideas to a broader audience. Now, Trump has emerged as that voice. He has taken to the stage at the Bitcoin Conference in Nashville, praising the crypto community and announcing a Bitcoin Strategic Reserve. He has also promised to free Ross Ulbricht and has launched his own DeFi project, World Liberty Financial, complete with a governance model that signals his commitment to crypto. As a result, Trump has attracted millions of dollars in donations from the crypto community. However, this alliance makes the author personally uncomfortable, not because of any love for Kamala Harris, but because Trump has a history of being a fair-weather friend. The author worries that Trump's embrace of crypto is driven by self-interest rather than a genuine commitment to the industry's principles. Here are three reasons why the crypto industry should be cautious about its alliance with Trump. Firstly, Trump may not follow through on his promises. His former White House officials have described him as unprincipled, and his track record suggests that he is willing to change his position if it suits him. Secondly, the crypto industry's alliance with Trump may alienate people outside the Republican Party. The industry's campaign groups are often run by Republicans, and their favored candidates are largely Republicans. This exclusivity may turn off liberal women and other groups who are essential to the industry's goal of wider adoption. Thirdly, the crypto industry will be associated with policies that have nothing to do with crypto. By supporting Trump, the industry is also supporting his stance on issues like Ukraine, deportations, and abortion. Is this really where the crypto industry wants to be culturally and socially? The author concludes that the opposition from the Biden Administration and the SEC over the past three years was bad for the industry, but aligning with Trump could be bad in a whole new set of ways.