In the short term, the Trump administration has already hampered multiple crises, attracting attention from the public. His party’s election, even in the deep red seats, faces tough questions away from Washington. Meanwhile, the Democratic foundations are increasingly upset by the inaction of their own party leadership in the face of the Trump administration’s full attack on everyday people.
What the moment wants is a democratic congressional delegation eager to be sincerely opposed to Trump and billionaire Elon Musk. Nevertheless, some Congressional Democrats think it’s wise to work with the Trump administration to specifically enrich the one industry that funded the surge in Republican power.
Last Wednesday, the Senate Banking Subcommittee on Digital Assets held a hearing to discuss bipartisan cryptocurrency laws. During the hearing, subcommittee Sen. Cynthia Lumith (R-Wyo.) chaired the group, said she intends to pass two major cryptocurrency laws this year. What is expected is that the first one focused on stable coins (tokens pinned to dollars) will easily lift, but the broader goal for the senator is to address the entire digital asset market.
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That is a long-term industry goal. The law sponsored by the rubber stamp industry has had multiple efforts by Congress. With both legislative sectors currently having a Republican majority, the industry is only demanding seven Senate Democrats to achieve their goals. And the industry’s deep influence campaign seems to be effectively convinced that the number of Democrats will end up crucifying them. Among them are Reuben Gallego, a ranking member of the Senate Banking Subcommittee on Digital Assets (branding support from Silicon Valley billionaire investors and quasi-fascist Mark Andreesen), Sen. Kirsten Gillibrand, Sen. Angela Angela Brooks, and Sen. Chuck Shamey
There’s so much more to the house, with the signature Richie Torres being the most industry friendly. Lawmakers represent America’s poorest Congressional districts, but have long prioritized crypto’s interests, even after checks from Sambankmanfried have dried up. On Monday, Torres joined Republican majority Whip Tom Emmer to announce the creation of the Congressional Cryptocratic Caucus.
These Democrats are embracing Republican colleagues, but the cryptocurrency industry is not fully in place by the Trump administration. A few days before his inauguration, Donald Trump released a meme coin and invited his supporters to buy Trump brand tokens that had no fundamental value. The only utility shown so far? Helps Chinese cryptocurrency investors avoid fraud prosecution.
In the next six weeks, Trump hatch man Elon Musk (his own major cryptocurrency investor) acted as his “agency.” The Trump SEC has concluded lawsuits, particularly against crypto companies such as Vinance, Coinbase, Consensy. We also determined that the coins in the memes are collectibles that do not fall under the surveillance system.
Just last weekend, Trump announced his intention to create a “strategic” government reserve for cryptocurrency. This is undoubtedly modelled on the law introduced by Senator Ramis, who created the bill last summer to create a “strategic Bitcoin Reserve.” Simply put, this effort is taxpayer-funded inflation for cryptocurrency asset prices, and subsequent “funds” are simply kept for decades, rather than strategically buying and selling, if they are under Ramis law.
Senate Democrats would have joined Republicans on Tuesday and requested that cryptocurrency brokers provide similar tax information to the equity brokers needed to provide the IRS in order to overturn Biden-era IRS rules.
Despite these unprecedented giveaways to the industry, Democrats seem eager to cooperate with even more industry-friendly policies. This is a mistake. The Trump administration has already announced that it will not enforce existing rules regarding money laundering while ending enforcement of securities laws. This allows Congressional Democrats to make unvaluable concessions from their Republican colleagues. Democratic cooperation on cryptocurrency projects is an acknowledgment of these extreme actions as executives actively dismantle the institutions responsible for implementing the law.
What’s even more worrying is that helping to pass this law put millions of retail investors at unpredictable risks in the crypto market, as ever, uncertain as the banking industry the country relies on. Throughout its existence, cryptocurrencies exist in a somewhat parallel financial system, separated from the traditional system that most Americans are used to. By bringing cryptocurrency into the system, the well-known volatility of cryptocurrency is not a problem only for cryptocurrency investors. This will be a problem for everyone.
Two years ago there was a short-lived banking crisis that defeated Silicon Valley Bank, Silvergate Bank and Signature Bank. All three were supported by Crypto’s banks. Rather than learning from this lesson, the Trump administration, along with its democratic allies, will make this the norm and encourage large banks, public pension funds and everyday investors to engage in cryptocurrency. The execution is weaker than ever.
Democrats should be in a completely corrupted mode of opposition. Instead of blocking Trump’s next financial crash from making, they are guaranteed that their fingerprints are on the bombs every moment.
Henry Burke is a senior researcher at the Revolving Door Project, studying issues related to cryptocurrency, financial regulations, corporate influence and economic media.
The views expressed in this article belong to the author himself.
