Critics say Trump's growing presence in the sector could become a new means for foreign companies and entities to influence the government.
President Donald Trump's growing business ties to the $3.5 trillion cryptocurrency market are generating concern within the sector itself. | Mladen Antonov/AFP via Getty Images
Washington's most powerful cryptocurrency champion is starting to become a headache for the industry.
More than four months after reclaiming the Oval Office, President Donald Trump's business empire is quickly establishing itself as a new cryptocurrency empire.
His interests in the poorly regulated sector include the digital assets startup World Liberty Financial and the memecoin $TRUMP, a type of high-risk cryptocurrency that was launched shortly before his inauguration. Last week, the president attended a private gala dinner at his golf club in Virginia for the top holders of the memecoin, generating national media coverage. And on Tuesday, the Trump Media & Technology Group, whose shares are mostly held by Trump, revealed plans to raise $2.5 billion to fund a wave of bitcoin purchases.
The growing interests of the Trump family in cryptocurrencies have, as expected, attracted the outrage of progressive advocacy groups, Democratic lawmakers, and ethics watchdogs. But they are also generating concern within the sector itself. With crucial legislation advancing in the Capitol, several lobbyists and executives say they are worried about the possibility of the president undermining his political agenda and even compromising his own efforts to establish the U.S. as the global capital of cryptocurrencies.
"It's a distraction," said a lobbyist who, like several other industry players who spoke to POLITICO, was granted anonymity to speak freely about Trump's business dealings. "We are excited to have a president enthusiastic about cryptocurrencies."
