After lavishly spending during the 2024 US election campaigns in support of the Republican Party Candidate, top American crypto firms like Coinbase, Circle, and Ripple have doubled their political spending by donating millions toward the Donald Trump inauguration fund.
Ripple, the crypto firm embroiled in a legal tussle with the SEC and a chief architect of the historic crypto spending into the 2024 election, has reportedly gifted the Trump Inaugural Fund $5 million worth of XRP.
Donors are Looking Forward to Cordial Relationships
On the other hand, a post on X by Circle CEO Jeremy Allaire states that he has contributed $1 million worth of tokens to the inaugural committee and joins a growing list of crypto firms that could be seeking favors with the new administration that takes office in a few days. Reports indicate that Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty have met with President-elect Donald Trump this week.
According to reliable media reports, Robinhood, the popular crypto trading app, donated $2 million to the Trump inauguration committee. Speaking to the press, the company’s Vice President for Global Environment and External Affairs stated, “We look forward to working with President Trump and the incoming administration to drive positive change in the markets, be an active voice for customers, and pursue our mission to democratize finance for all.”
Growing List of Crypto Firms Donating
Coinbase is also on the growing list of crypto firms pouring millions into the fund, having recently donated $1 million after spending large sums supporting the president-elect’s campaign. Reports indicate that Coinbase was the first to offer such a donation towards the end of 2024. Commenting on the development, Coinbase Vice President for US Policy Kara Calvert stated:
“Coinbase is committed to working with the administration and both sides of Congress to create regulatory clarity for crypto, and it’s important to engage early to hit the ground running […] That’s why Coinbase committed to supporting President Trump’s transition and ultimately his inauguration well ahead of the election.”
The leading American-based cryptocurrency exchange, Kraken, donated $1 million towards the inauguration. The firm’s founder, Jesse Powell, spent $845,000 worth of Ethereum on the president-elect’s election campaigns last year. The list of crypto firms making huge donations is growing and includes MoonPay, Ondo Finance, and others.
Coinbase and Ripple Among the Biggest Donors
Apart from crypto firms, several non-crypto firms based in Silicon Valley reportedly invested heavily in the Trump Inauguration fund. Meta and Google recently stated they had donated at least $1 million each. The crypto industry outdid itself during the 2024 US election campaign and spent over $119 million towards the historic re-election. According to a Washington DC-based watchdog group, Public Citizen, Coinbase and Ripple were among the most prominent donors towards the re-election of Trump, who had previously called Bitcoin a “scam against the dollar.” However, Trump later shifted his stance and pledged to make the US the crypto capital of the world.
Conclusion
Historically, inaugural funds like the crypto firms have been donating heavily towards paying for lavish parades, parties, and dinners that happen around the time when the incoming president gets sworn in. These donations are commonplace for wealthy individuals or a corporation that may be looking forward to favors from the new president or rub shoulders with who-is-who’s in the new administration. Only time will tell whether these donations will bear fruit, but Trump’s re-election already resulted in the Bitcoin rally that saw it crossing the $100,000 mark for the first time.
Frequently Asked Questions (FAQs)
What is the regulation for cryptocurrency?
Crypto regulation refers to the legal and procedural frameworks that governments establish to shape the digital asset space. Crypto regulations in different countries differ widely, with some supporting them while others completely banning them.
How is crypto regulated in the US?
The US crypto regulatory landscape continues to evolve without a specific or defined framework. Industry leaders hope Donald Trump’s administration will fix the problem once and for all.
Are there risks in regulating digital assets?
While crypto industry participants long for some form of regulation, it could come with some risks if not handled correctly. Crypto industry players want regulations that will not stifle innovation or obstruct access to cryptocurrencies.
