Relying On Donald Trump May Have Unintended Consequences For Crypto

This year, crypto has seemingly finally found its political champion, Donald Trump. For years, the industry struggled to find a figure who could speak to its values of freedom and innovation. Now, Trump is stepping into that role, with promises like a Bitcoin Strategic Reserve, freeing Ross Ulbricht, and even launching his own DeFi project.

His actions and words align with the crypto crowd, drawing millions in donations and support. Trump has displayed a sense of political flexibility that makes him the ideal ally, especially as the crypto community seeks a friend in Washington. But as much as crypto might be excited about this new alliance, there are serious reasons to be cautious.

A Certain Risk

Trump has a history of changing his stance on key issues and this raises doubts about his commitment to crypto. His unprincipled nature is well documented, and he has also been criticized for undermining Constitutional norms to suit his needs. Given his track record and history of going back on his word, it is hard to believe he will follow through on his crypto promises.

Moreover, while crypto has aligned itself with the Republican Party, this can alienate potential supporters on the left. Many in the industry back conservative candidates, and inflammatory comments by crypto advocates only widen the divide. If crypto wants to grow beyond its current base, it needs to avoid divisive rhetoric that turns away key groups, especially liberals and the LGBTQ community, both of which despise Trump.

Controversial Policies

Supporting Trump means supporting more than just crypto-friendly policies. If the industry backs him, it could also be endorsing his stances on immigration, abortion, and other divisive issues. Indeed, associating with Trump and his broader political agenda could damage the crypto industry and its desire to appeal to a wider audience.

In short, while supporting Trump might seem like a win for crypto, it comes with certain risks, both in terms of his reliability and the broader political baggage he brings. Crypto should be careful what it wishes for, as this alliance could have unintended consequences.