Trump-era donor cash fuels crypto cases
FT counts roughly 30 donors tied to $116.8 million in contributions. Many later received pardons, regulatory relief or policy changes. Ethics groups call the pattern unprecedented.
FT’s reporting places crypto near the center of the donor‑benefit map. After campaigning to make the U.S. the “crypto capital,” the administration eased enforcement, dissolved the DOJ's crypto unit. SEC Chair Paul Atkins was appointed, pledging to “enforce the law” without politics. Against that reset, a string of high‑profile crypto investigations were closed or withdrawn.
Examples run from exchanges to marketplaces. Weeks after the Winklevoss twins donated to pro‑Trump groups, the SEC closed a long‑running Gemini probe; Coinbase saw a major lawsuit withdrawn in February; investigations into Crypto.com, OpenSea and Nova Labs were also dropped. Separately, World Liberty Financial’s USD1 stablecoin became entwined with deals touching Trump‑aligned businesses, adding a political dimension to on‑chain finance.
Reactions were divided along familiar political lines. “Any allegations of special treatment are false,” said White House spokesperson Abigail Jackson. Former Obama counsel Bob Bauer countered that what’s “unique about this presidency is the open transactionalism” of its style. SEC Chair Paul Atkins said the agency is “enforcing the law, period.”
Near‑term market effect is straightforward. Softer enforcement pressure supports listed crypto proxies (COIN and peers) and lowers perceived headline risk across large venues and issuers. The same dynamic, however, invites policy whiplash: a future personnel or policy turn at SEC/DOJ could revive cases or re-tighten standards, especially if congressional or state‑level probes frame the donations–decisions sequence as pay‑to‑play. Liquidity may expand temporarily and contract rapidly if the narrative turns.
A compact timeline makes the pattern legible without overclaiming: donations into MAGA‑aligned vehicles, an enforcement pivot, and then specific case resolutions (Gemini, Coinbase, Crypto.com, OpenSea, Nova Labs) landing within months of major gifts. FT also notes developments around USD1/World Liberty Financial and business ties with Trump‑affiliated entities.
Regulatory rules and personnel decisions influence the cost of capital and shape listing prospects and ETF mechanics. Stablecoin infrastructure tied to political actors can face trust shocks; a fresh oversight wave could quickly redraw the landscape.
In the next quarter, expect continued relief for big‑cap crypto names if the current approach holds, with COIN‑type equities and liquidity providers as main beneficiaries.
Other risks include congressional hearings on donor influence, state attorneys general testing the line between policy and patronage, and fresh disclosures around USD1 that either normalize its use or spark new scrutiny. If leadership at key agencies shifts or lawmakers force reviews, the pendulum can swing back, affecting valuations and trading volumes.
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