Elon Musk’s New Party: Announced the formation of the America Party, aiming to challenge the U.S. two-party system.
Pro-Bitcoin Stance: Musk confirmed the party will embrace Bitcoin, citing fiat currency’s flaws.
Motivation: Triggered by a rift with President Trump over a $3.3 trillion spending bill Musk calls fiscally irresponsible.
Crypto Community Reaction: Strong support from Bitcoin advocates like Max Keiser and Mario Nawfal.
No Formal Registration: The America Party has not yet been registered with the U.S. Federal Election Commission.
On July 7, 2025, tech billionaire Elon Musk sent shockwaves through both political and cryptocurrency circles by announcing that his newly formed America Party will embrace Bitcoin as a core part of its platform, dismissing traditional fiat currency as “hopeless.” The announcement, made via a post on X, comes amid a growing public feud with U.S. President Donald Trump over a controversial $3.3 trillion spending bill, highlighting Musk’s pivot toward a pro-crypto political agenda.
The Birth of the America Party
Musk’s decision to launch the America Party stems from his frustration with the U.S. political system, which he describes as a “uniparty” that fails to prioritize fiscal responsibility. The catalyst was Trump’s “Big Beautiful Bill,” a massive tax and spending package passed with a narrow House vote of 218 to 214. Musk, a former ally of Trump, labeled the legislation a “disgusting abomination” and accused it of exacerbating the national debt, projected to rise from $2 trillion under Biden to $2.5 trillion under Trump’s policies. In response, Musk polled his X followers, with nearly two-thirds of 1.24 million voters supporting the creation of a new political party.
The America Party, though not yet officially registered with the U.S. Federal Election Commission (FEC), aims to focus on key House and Senate races rather than a presidential bid. Musk’s goal is to create a swing bloc to influence contentious legislation, ensuring it aligns with “the true will of the people”.
Bitcoin as a Political Cornerstone
Musk’s endorsement of Bitcoin is a bold move that aligns with his long-standing interest in cryptocurrencies. In a direct response to X user Renato Lima, who asked if the America Party would embrace Bitcoin, Musk replied, “Fiat is hopeless, so yes”. This stance reflects his belief that fiat currencies, prone to inflation and government mismanagement, are unsustainable. Instead, Musk sees Bitcoin as a decentralized alternative that could combat issues like “Washington’s addiction to money printing,” as echoed by crypto advocate Mario Nawfal.
Musk’s crypto ties are well-documented. Tesla, under his leadership, purchased $1.5 billion worth of Bitcoin in 2021, making it one of the first major corporations to hold BTC in its treasury. As of July 2025, Tesla holds 11,509 BTC, valued at approximately $1.26 billion, ranking it among the top publicly traded companies with Bitcoin reserves. Musk has also championed Dogecoin, with his posts often driving price surges, and SpaceX has explored crypto payments, including the DOGE-1 satellite mission fully funded by Dogecoin.
Crypto Community Rallies Behind Musk
The crypto community has responded with enthusiasm. Bitcoin advocate Max Keiser and Mario Nawfal, founder of IBC Group, praised Musk’s move, with Nawfal stating, “Crypto could be the strongest tool to fight inflation and runaway spending”. Jan3 founder Samson Mow suggested Tesla should resume accepting Bitcoin payments and SpaceX offer discounts for BTC transactions, potentially amplifying Musk’s influence in the crypto space.
BREAKING: Elon Musk says his new 'America Party' will embrace Bitcoin."Fiat is hopeless." so YES https://t.co/lDQifSPqSJ
— Designpreneur (@_temioflagos) July 7, 2025
Challenges and Political Backlash
Despite the hype, the America Party faces significant hurdles. Trump has criticized Musk’s initiative, warning that a third party could fracture the Republican vote in the 2026 midterms, calling Musk a “TRAIN WRECK”. The U.S. political system, historically dominated by the Republican-Democratic duopoly, has rarely seen third parties succeed, and Musk’s party remains unregistered with the FEC, raising questions about its immediate viability.
Additionally, Musk’s claim of an FEC filing under his name was debunked as false, adding to skepticism about the party’s formalization. Critics argue that Musk’s focus on Bitcoin may be more symbolic than practical, given the complexities of integrating cryptocurrencies into political financing.
Bitcoin in U.S. Politics
Musk’s pro-Bitcoin stance comes at a time when cryptocurrencies are gaining political traction. The U.S. House of Representatives has designated July 14-18 as “Crypto Week” to debate bills like the CLARITY Act and the Anti-CBDC Surveillance State Act, signaling growing legislative focus on digital assets. The approval of the REX-Osprey Solana + Staking ETF further underscores the mainstreaming of crypto in financial markets.
Top Public Companies Holding Bitcoin (July 2025)
Company Bitcoin Holdings Value (USD) Rank MicroStrategy 252,220 BTC $27.6B 1 Tesla 11,509 BTC $1.26B 9 Marathon Digital 10,054 BTC $1.10B 10 Source: Bitbo, July 2025
See here more companies holding Bitcoin.
Musk’s America Party could amplify this trend, potentially influencing policies that favor Ethereum and other digital assets alongside Bitcoin. However, its success hinges on Musk’s ability to navigate political and regulatory challenges while maintaining crypto community support.
What’s Next?
As Musk’s America Party takes shape, its pro-Bitcoin stance could reshape the intersection of politics and cryptocurrency. While the party’s immediate impact may be limited, Musk’s influence—backed by his $400 billion fortune and Tesla’s Bitcoin holdings—ensures it will be watched closely. For now, the crypto community sees this as a bullish signal for Bitcoin’s adoption, but the road to political relevance remains steep.
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