This announcement comes after a public disagreement with President Donald Trump, stemming from Musk's opposition to what he calls the "debt slavery bill," the massive economic stimulus package heavily promoted by Trump, also known as the Big Beautiful Bill. Musk believes the law will promote reckless fiscal policy and increase economic instability.
Why Bitcoin plays a central role in Musk's political vision.
In a recent post on X, Musk declared fiat money to be "hopeless," signaling a bold pivot towards digital assets in political discourse. Bitcoin, in particular, is seen as foundational to the American Party platform.
Musk has long been a strong advocate for cryptocurrency, with Tesla and SpaceX holding Bitcoin on their balance sheets. Now, he is expanding that vision into the political realm, promoting Bitcoin as an anti-inflation tool and a counter to centralized monetary control.
Focus on Congress, not on the presidency.
While many speculate Musk may have ambitions to become president, he has made it clear that his immediate focus will be on congressional races rather than running for the White House.
The American Party aims to support innovation, protect free speech, and reduce excessive regulations—while still maintaining a moderate stance on divisive issues. A record under the name "Elon Reeve Musk" for the "American Party" has recently circulated on X, purportedly from the Federal Election Commission (FEC).
However, no such records exist on the official FEC website, and Musk has denied any connection to that record, calling it false.
The rift between Musk and Trump has become public.
Tensions between Musk and Trump have escalated quickly. Following Musk's announcement, Trump criticized Truth Social, calling Musk a "TOTAL TRAIN WRECK" and accused him of "going off track." The confrontation highlights the deeper rift between the two figures, who once shared similar political views.
Musk's support among young, tech-savvy, cryptocurrency-friendly voters is growing, putting him at odds with Trump supporters.
In response, Musk accused Trump of abandoning the political center. He opened a poll asking followers whether he should form a new party for the "80 percent in the middle." After receiving overwhelming support, Musk proceeded to unofficially launch the American Party.
Backchannel Offers and Political Ambitions
Before forming his own party, Musk was reportedly approached by political figures like Andrew Yang and Libertarian Party Chairman Steven Nekhaila, urging him to support their movement. However, Musk remains focused on fighting against Trump's bill and challenging Republicans who support it.
He then revealed a loose political strategy, criticizing both the Democratic and Republican parties as a "uni-party" lacking meaningful distinctions. Although some have speculated about Musk's presidential ambitions, the U.S. Constitution prohibits him from running—due to being born in South Africa. This restriction limits the leadership options of the American Party but does not dampen its momentum.
