Holding the peace

I saw a tweet recently that posited something I believe to be true: Swaths of the crypto industry are loath to criticize President Trump's crypto entanglements and those of his family.

Some of the lack of criticism, I think, stems from real agreement with the administration's goals and objectives. Others, however, are likely shying away out of a desire to avoid rocking the boat during a critical moment for the industry.

I feel I've done my best to highlight the conflict-of-interest minefield created by the Trump family's growing crypto empire and the fact that the president oversees the government that ostensibly regulates said empire.

ICYMI: That empire continues to grow. Just this week, Eric Trump's bitcoin mining company announced its intention to go public via a merger. $TRUMP, World Liberty Financial, American Bitcoin — each an extension of the Trump name and brand into a sector that has spent considerable time and money currying favor in Washington DC, and is now, after many years, on the cusp of securing long-sought legislative wins.

And that, I think, is the heart of why crypto business leaders might shy from more overt criticism of, say, the mega-conflicted, memecoin-fueled "intimate dinner." Since its inception, crypto activities in the US have largely been subject to legal and regulatory interpretations — that is, viewing the industry's actions and decisions via rules and laws that predate crypto. Regulators, judges and everyone in between have all tried to fit crypto into boxes that don't quite fit.

Absent real Congressional action that would provide clear-cut rules and the force of law, this state of affairs has exposed the industry to interpretations that smack of politics. I think Coinbase, a16z and other American crypto heavyweights can be forgiven for throwing their dollars behind a party that appeared less willing to pursue regulation via enforcement action.

But we seem to be approaching a new era. Despite initial setbacks, the stablecoin-centric GENIUS Act appears poised for passage. Crypto appears to be one of those rare areas of bipartisan interest.

However, as Congress barrels toward a potentially calamitous debate over tax and spending reform, the jury, as always, remains out. The Trump family's crypto business ties have hindered Democratic support, which is critical for any bill to get through the closely divided Senate.

As a result, the US crypto industry is still caught in the political winds. Would you criticize the party, the president or, indeed, the family of those who possess the power to set you back?

For some, this calculus is very real, and while I don't personally agree with it, there's some logic to it.

— Michael McSweeney

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The Roundup

Empire: The DOJ is plowing ahead with plans to prosecute one of Tornado Cash's founders.

Forward Guidance: Felix Jauvin breaks down what Trump's tariff war means for the US economy, now and in the future.

Lightspeed: We're back? And the memes, too?

0xResearch: Let's diagnose the flailing crypto liquid funds.

The Drop: These VCs aren't giving up on crypto gaming.

Supply Shock: Happy Bitcoin Pizza Day, y'all.

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