Donald Trump’s deepening entanglement with the cryptocurrency world – from fundraising deals with controversial digital asset firms to sweeping promises of deregulation – is prompting fierce criticism from legal experts and former regulators who warn that his actions risk eroding the integrity of U.S. financial oversight.

Trump, now the presumptive Republican nominee, has increasingly positioned himself as a “crypto saviour” on the campaign trail, vowing to dismantle Biden-era regulations and embrace what he calls a “free crypto economy.” But behind the bombastic slogans lies a complex network of political donations, foreign-linked partnerships, and policy proposals that critics say amount to nothing less than institutionalized corruption.

Campaign Cash from Crypto Giants

A major source of concern surrounds Trump’s recent closed-door fundraising dinners with top executives from crypto firms under federal investigation. Among them is GenesisBit, a digital asset trading platform facing multiple lawsuits related to market manipulation and deceptive practices. The company reportedly contributed over $3.2 million to Trump-aligned PACs in May alone.

“These aren’t just tech entrepreneurs,” said Richard Painter, former White House ethics lawyer under George W. Bush. “Some of these firms are essentially using campaign donations as bribes for regulatory protection.”

The ‘Crypto Executive Order’

One of Trump’s most controversial pledges is a proposed executive order that would severely limit the SEC’s authority over the crypto sector. The draft, leaked earlier this month, outlines plans to shift jurisdiction to the Commodity Futures Trading Commission (CFTC) – widely seen as more industry-friendly – and allow crypto firms to operate with minimal oversight.

For many in the financial regulation space, this would be a seismic shift.

“This is a green light for abuse,” said Barbara Roper, a senior adviser to the Consumer Federation of America. “Trump is offering a regulatory safe haven to his campaign’s biggest donors.”

Foreign Interests in the Mix

Adding to the scrutiny is Trump’s apparent willingness to accept support from international crypto figures. One major backer of the new FreedomCoin – a digital asset heavily promoted on Trump-affiliated media – is believed to be a shell company registered in the Cayman Islands, with indirect links to Russian and Emirati capital.

“The national security implications are serious,” warned Senator Elizabeth Warren, who has called for an investigation. “This is not just a financial scandal. It’s a geopolitical one.”

A High-Stakes Political Play

Despite the controversy, Trump’s pro-crypto stance appears to be resonating with a segment of younger, tech-savvy voters who view digital assets as the future of finance. His campaign has launched NFTs, hosted blockchain summits, and accepted crypto donations through multiple wallets.

Analysts say it’s a calculated strategy.

“He’s tapping into anti-government sentiment in the digital space,” said Jared Holt, a political extremism researcher. “But he’s also courting billionaires with a vested interest in killing regulation.”

A Dangerous Precedent?

For watchdogs and ethics advocates, Trump’s crypto crusade may mark a troubling new chapter in American politics – one where the lines between public office, private gain, and foreign interference are increasingly blurred.

“I’ve seen a lot in my years in government,” said Walter Shaub, former director of the Office of Government Ethics. “But I have never seen such open corruption cloaked in tech populism. It’s a warning sign for democracy.”