Report: Trump's Crypto Policy Shift Under Scrutiny
A recent report delves into federal law enforcement's approach to crypto firms during President Trump's term. While many companies experienced leniency, those in Web3, fintech, and AI saw the most significant benefits.
Trump's Crypto Enforcement Strategy: A Closer Look
The report suggests this shift was part of a deliberate strategy, potentially influenced by substantial campaign contributions exceeding $1 billion. This influx of funds may have eased regulatory pressure and reshaped federal policy.
Key Findings:
- Enforcement actions against 165 companies were dropped since the 2024 election.
- Tech firms comprised 25% of those benefiting from reduced enforcement.
- Web3 companies emerged as the primary beneficiaries.
Critics point to a perceived rise in corruption, highlighting instances where crypto ventures seemed to boost Trump's personal wealth. Public Citizen's comprehensive report aims to provide concrete data to better understand this dynamic.
Campaign Contributions and Policy Changes
While Trump's campaign criticized what it deemed unfair crypto enforcement under Biden, the report reveals a more nuanced picture. The industry's substantial financial support—amounting to at least $1.2 billion—played a significant role.
Executive Influence:
- Executives from companies like Gemini actively advocated for reduced enforcement.
- These individuals maintain influence within Trump's administration.
The report details specific instances of companies donating to Trump, subsequently receiving leniency, and maintaining ongoing connections to potentially prevent future regulatory actions. This multifaceted approach appears to have significantly reshaped the landscape of crypto regulation.
This creates a situation where reversing these changes in a single presidential term may prove challenging, leading some to suggest a fundamental shift in the enforcement of financial regulations.