Crypto.com faced intense scrutiny by President Biden’s administration as part of a broader push to regulate the unregulated cryptocurrency sector. However, following Donald Trump's successful return to the presidency in 2024, the investigation into Crypto.com was surprisingly dropped. In response, the company significantly increased its lobbying efforts, donating $11 million to political committees associated with Trump.
By August, Crypto.com announced a partnership worth approximately $1 billion with Trump Media, allowing the latter, operating Truth Social, to benefit substantially despite its financial losses since inception. This strategic alliance has raised eyebrows among legal and ethics experts who highlight the potential conflicts of interest posed by such arrangements. Historically, presidents have sought to avoid any appearance of profiting from their positions, yet this situation appears to blur those lines.
As politicians have often claimed, companies seeking favorable policies may feel the pressure to provide financial incentives to those in power. Following the cessation of investigations, further dealings between Crypto.com and Trump Media signify a worrying trend within political and business intersections.
With Trump Media previously struggling to establish its footing, the merger with Crypto.com aims to bolster both entities as they explore new market opportunities, including the creation of new digital products and online betting platforms. As the landscape around cryptocurrency continues to evolve, the alliance between a cryptocurrency firm and a media platform affiliated with Trump will be closely scrutinized by regulators and the public alike.
