Cryptocurrency companies are making significant financial contributions to Trump’s inauguration, with major figures like Ripple, Kraken, and Coinbase leading the way. However, there are questions about the nature of these multi-million-dollar donations, whether they are strategic moves or borderline bribery.
Cryptocurrency companies are donating a lot of money to President-elect Donald Trump’s upcoming inauguration, with big names like Kraken, Coinbase, and Ripple pitching in. The crypto industry is hoping to build a good relationship with the incoming administration.
But the big question is: are these donations a smart investment in the future of digital currencies, or are these companies just trying to gain favor to secure better regulations for themselves?
Massive donations from crypto giants
Ripple is winning the race with a donation of $5 million in XRP tokens to President Trump’s inauguration committee. Ripple’s CEO, Brad Garlinghouse, said, “We believe in supporting initiatives that help drive innovation and technology forward.”
Kraken, another major crypto exchange, also committed to donate $1 million. Ondo Finance follows the path by committing $1 million after a Trump-linked DeFi project invested $250,000 in the ONDO token. Founder Tim Drapper said, “We’re happy to support an administration that understands the value of digital assets.”
Coinbase and MoonPay also joined in, with Coinbase donating $1 million even before the election results. Brian Armstrong, CEO of Coinbase, said, “This donation shows our commitment to building relationships with policymakers who understand the future of finance.”
Crypto companies started donating as far back as during the campaign. Elon Musk, who supports cryptocurrencies like Dogecoin, played a major role in backing Trump. His support helped bring attention to digital currencies during the campaign.
Ripple’s donations during the campaign were a strategic move to make sure the new administration understood the crypto industry.
These donations were part of a larger effort that raised over $200 million for Trump’s inauguration, breaking previous fundraising records. While companies like Amazon and Meta also contributed majorly.
Why the crypto industry is all in for Trump
The main reason behind these donations is the crypto industry needs clearer rules. For a long time, crypto companies have faced uncertainty about the legal status of digital assets in the U.S. Agencies like the SEC have muddled up the regulatory waters.
Trump’s pro-business approach and promises to reduce regulations make him a key figure for the crypto industry.
Coinbase is committed to working with the Administration and both sides of Congress to create regulatory clarity for crypto, said Kara Calvert, Coinbase’s VP for U.S. Policy. “That’s why we committed to supporting President Trump’s transition and ultimately his inauguration well ahead of the election.”
During his campaign, Trump hinted at making regulations less strict, which made him appealing to crypto leaders who feel that President Biden’s policies are restrictive.
Many of the donations came in even before the election results were out, which could be interpreted as these companies strategically aligning themselves with Trump’s administration early on.
Crypto-friendly appointments
The crypto industry’s support for Trump has been repaid early with notable appointments in his administration. Trump has picked Paul Atkins, a known crypto supporter, to lead the SEC.
Ripple CEO Brad Garlinghouse praised the appointment, hoping it will lead to less strict regulation compared to the outgoing SEC Chairman, Gary Gensler.
Trump also appointed David Sacks as the first-ever “crypto and AI czar,” showing that his administration is friendly towards digital assets. However, that appointment may face some uncertainties according to recent reports.
With over $200 million pledged already, these donations show the crypto sector wants a strong relationship with Trump’s government. The timing and size of these donations suggest a strategic move to influence future regulations.
While it’s unclear if this will lead to the changes they hope for, one thing is certain: the crypto industry is making its voice heard, investing heavily in securing a more favorable business environment under Trump.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 