American crypto companies were strongly acquired to the president Donald TrumpRe -election in 2024, contributing More than $ 144 million towards his campaign. But “uncontrolled political spending” present “deep risks”, according to a report Published by the Center for Political Accountability (CPA), a non -profit organization promoting the transparency of the political contributions of companies.
The report indicates that the “aggressive push of cryptographic societies for deregulation, combined with opaque and inexplicable political contributions”, raised “red flags among regulators”. More importantly, he “eroded the confidence of investors and public confidence in the long -term viability of these companies”.
Cryptographic companies have made a donation to re -election Trump, and this bears fruit
Political expenses of Crypto-Crypto companies reached “an unprecedented scale” during the Trump re-election campaign, in particular Jamming And Ripplesaid the report.
Coinbase political action committee (CAP) given More than $ 79 million for Trump’s re-election, according to Opensecret data, a platform that follows political donations. Ripple was the second larger donor among cryptographic companies with contributions exceeding $ 63.6 million.
Coinbase too given $ 1 million in the Trump inauguration committee while Ripple donated $ 5 million in digital assets. In addition, Coinbase is committed to donating $ 25 million for the mid-term elections of 2026.
Tyler and Cameron WinklevossThe founders of the Crypto Exchange Geminimade a donation of $ 1 million dollars of Bitcoin (BTC) to Trump 47. Their donations exceeded the legal limit of $ 844,600 and they received collectively Refunds of more than $ 300,000.
The three exchanges were in hot water with the American commission for securities and (dry) exchange for years. In June 2023, the dry charge Coinbase to operate as unregistered securities scholarship.
Ripple was involved in a legal battle with the dry Since 2020. In August 2024, Ripple obtained a partial victory Before the court, the judge said that XRP could not be classified as titles because they did not respond to the Howy test. The dry, however, appealed the decision, what CEO Brad Garlinghouse described as a “madness”.
Likewise, in January 2023, the dry charge Gemini and Genesis for having offered unregistered titles as part of their now final gay program. After a federal courtyard denied The request of companies to reject the case of the SEC, Genesis ruler The case paying $ 21 million. However, the Gemini continued to fight.
Trump promised to dismiss the president of the dry, Gary Gensler, but Gensler resigned from the inauguration of Trump. Since then, the tables have turned and things have started looking for cryptographic companies.
Last month, Cameron Winklevoss announcement that the SEC has abandoned its investigation into the exchange. The company would have now laid For a first public offer (IPO) confidentially. Likewise, the dry rejected His case against Coinbase on February 27.
Earlier this week, Trump also signed an executive decree creation A strategic bitcoin reserve.
The risks of uncontrolled political expenditure could compromise the entire industry, according to the statements of the CPA report
The CPA report says that cryptographic societies have used political contributions to obtain a political influence. This strategy poses reputation, legal and financial risks, and could turn against him, not only by dosing the future of the companies involved, but throughout the industry.
The report indicated:
“While industry (crypto) continues to request an influence by large contributions and opaque financial maneuvers, the risks of instability, regulatory reaction and distrust of the public only grow.”
The report has also warned that, historically, industries which prioritize short -term political gains on transparency and compliance are often faced with serious consequences. This includes regulatory repression and the decline in consumer confidence.
The CPA report also underlined the conflicts of interest within the Trump administration which raise serious ethical questions. For example, Crypto Investor David SacksTrump’s choice for “Crypto Czar” is about to make important gains with the creation of the American BTC stock.
Earlier this week, the bags confirmed That he gave in his personal cryptographic operations before the Trump administration’s start. However, he is still a partner of his investment company Craft Ventures, which has participations in cryptographic companies. Consequently, the investment company, and therefore the bags, could benefit from the benefit of bitcoin of the American government.
“This spectrum of irregularity does nothing to support concerns about the nature of payment of cryptocurrency,” noted the report.
The report also highlighted the dangers that political leaders promoting coins and fraud tokens. For example, Argentinian president Javier Milei promoted a token called $ balance that lost around $ 4.6 billion in hours. Likewise, Trump promoted his own same $ Trump on January 17. The token reached a culminate More than $ 73 on January 19, but has since lost more than 83% of its value.
The CPA report ended:
“Without greater transparency and responsibility, the very future of the legitimacy of cryptography in the financial world remains uncertain.”
